XRP, Why Did It Stop at $1.40? Can It Break Through?

▲ Ripple (XRP) ©Go Dasol

XRP continues to trade sideways around $1.40, showing a stalled upward trend due to slowing demand from individual and institutional investors.

According to investment media FXStreet on May 4 (local time), XRP (Ripple) is currently trading around $1.40, and continues to be confined within a price range of $1.30-$1.40. Analysis suggests that weakening demand across digital asset investment products and derivatives is preventing it from establishing a clear direction.

Notably, the decrease in open interest indicates a slowdown in investor sentiment. XRP futures open interest remains at approximately $2.5 billion, a significant decrease from the $10.94 billion recorded in July last year. This suggests that individual investors remain skeptical about the sustainability of a short-to-medium-term upward trend.

Institutional demand is also failing to gain momentum. The XRP spot ETF recorded a net outflow of $35,210 last week, with cumulative inflows at $1.29 billion and net assets remaining at approximately $1.06 billion. It is assessed that the slowdown in demand for investment products is acting as a limiting factor for price rebound.

Technically, overhead resistance is clear. The price is trading below the area where the 50-day exponential moving average at $1.41 overlaps with the Bollinger Band midline, repeatedly limiting upward attempts. The Relative Strength Index (RSI) remains neutral around 50, and the Moving Average Convergence Divergence (MACD) also shows a weak negative trend, indicating a lack of clear momentum.

The key going forward is whether it can break out of the consolidation range. On the upside, if it breaks $1.41, then $1.47, and further $1.50 and the 100-day moving average are expected to act as major resistances. Conversely, if the $1.36 support level breaks, downward pressure will intensify, opening up the possibility of further correction.

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