• XRP consolidates near the $1.33 support level, underscoring a deteriorating technical outlook amid major moving averages trending lower.
• XRP saw mild inflows of $1.55 million through ETFs on Tuesday, while futures Open Interest remains steady.
• XRP momentum indicators continue to soften, with the MACD firmly entrenched in sell territory.

Ripple (XRP) extends its consolidation around $1.33 at the time of writing on Wednesday, as market participants largely remain on the sidelines awaiting clarity over a potential Memorandum of Understanding (MOU) between the United States (US) and Iran. 

Sentiment deteriorates amid mild capital inflows

Crypto market sentiment has broadly declined, as shown by the Fear & Greed Index falling to 25 on Wednesday, into the Extreme Fear territory, from 34 the previous day. Continued deterioration in appetite for risk assets like XRP could further limit the recovery potential, leaving the token vulnerable to extended losses.

Although institutional interest has remained steady over the past two weeks, inflows into XRP spot Exchange-Traded Funds (ETFs) have been mild, totaling $1.55 million on Tuesday. SoSoValue data shows that cumulative inflows average $1.41 billion while net assets under management stand at $1.12 billion. As sentiment remains suppressed, demand for XRP-related digital investment products cools, reducing the odds of a sustained uptrend.

At the same time, retail capital flowing into derivatives is steady at $2.93 billion on Wednesday, up slightly from $2.85 billion the day before. A steady rise in retail demand directly supports XRP’s bullish outlook, while declines put pressure on the price.

Price analysis: XRP sellers retain control

XRP trades at $1.33, keeping a bearish near-term bias as price holds below the 50-day, 100-day and 200-day Exponential Moving Averages (EMAs) at $1.40, $1.47 and $1.68, respectively. Momentum conditions reinforce downside pressure, with the Relative Strength Index (RSI) lingering near 39 on the daily chart and the Moving Average Convergence Divergence (MACD) histogram remaining in negative territory, hinting that sellers still control the tape despite intermittent bounces.

On the topside, initial resistance lies at the 50-day EMA around $1.40, with further hurdles at the 100-day EMA near $1.47 and the more distant 200-day EMA at $1.68, which together outline a broad supply band capping any recovery attempts. On the downside, the rising trendline region near $1.31 offers the first notable support, and a daily close below this floor would likely open the door to a deeper corrective phase.

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