• XRP resumes its downtrend, trading around $1.40 amid risk-off sentiment weighing on the broader cryptocurrency market.
• XRP-related investment products recorded $63.1 million weekly inflows last week, with spot ETFs accounting for $39 million on Friday.
• The XRP derivatives market remains fragile, with futures Open Interest falling to $2.47 billion.

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Following last week’s turbulence, XRP hit a yearly low at $1.12 on Friday but quickly rebounded to $1.54. A brief consolidation followed amid price fluctuations around the $1.40 psychological threshold. 

XRP wobbles as institutional and retail interest clash 

XRP continues to attract institutional investors, with total inflows into related financial products averaging $63.1 million last week, according to CoinShares data. Outflows generally slowed, signalling a potential inflection point. 

Inflows into US-listed spot Exchange-Traded Funds (ETFs) totaled $39 million through the week, accounting for the lion’s share of the aforementioned $63.1 million. The cumulative inflow into XRP ETFs stands at $1.22 billion, with net assets under management at $1.04 billion.

Meanwhile, the XRP derivatives market remains weak, as reflected by futures OI falling to $2.47 billion on Monday, from $2.53 billion on the previous day. A minor recovery on Saturday had elevated the OI to $2.63 billion. Still, growing uncertainty in the broader crypto market, risk-off sentiment, and profit-taking, retail interest remains on the back foot.

Technical outlook: XRP upside limited as sellers tighten grip

XRP is trading around $1.40 as the 50-day Exponential Moving Average (EMA) descends to $1.83, capping near-term rebounds, while the 100-day EMA at $2.01 reinforces the overall downtrend. The remittance token holds well below both of the moving averages, keeping the broader structure bearish.

Similarly, the Moving Average Convergence Divergence (MACD) shows the MACD line below the signal line, while the red histogram bars have been contracting, emphasizing the short-term bearish outlook. The Relative Strength Index (RSI) sits at 34, below the midline and edging toward oversold. A recovery of the RSI above 40 would be necessary to ease pressure.

The descending trend line from $3.66 limits advances, with resistance near $2.16. Meanwhile, the 200-day EMA at $2.19 marks the next barrier. A daily close above the pivotal level at $1.40 could help shift the tone positively as investors lean into risk, and increase the odds of a breakout above the 50-day EMA at $1.83. Still, failure to do so would keep rallies contained and possibly trigger a sell-off toward Friday's low at $1.12.

(The technical analysis of this story was written with the help of an AI tool.)