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XRP (Ripple) has rebounded from the $1.03 support line to recover $1.07, but questions are being raised about the sustainability of this short-term rebound due to continued outflows from Ethereum spot ETFs and weakening demand from retail investors. However, technical indicators also show signs of gradually recovering upward momentum.
According to investment media FXStreet on July 2 (local time), XRP fell to $1.03 amid a sell-off that recently swept across the cryptocurrency market, then rebounded to above $1.07. The news of positive progress in US-Iran negotiations in Doha contributed to the rise, as risk appetite partially recovered.
However, institutional investor sentiment remains subdued. According to SoSoValue data, XRP spot ETFs saw net outflows of approximately $2 million on Wednesday and $3 million on Tuesday. The media analyzed that two consecutive days of outflows indicate that risk-aversion sentiment is still prevalent, likely limiting the extent of the short-term rebound.
Retail investor demand also appears to be slowing. Open interest across the futures market, including the US Chicago Mercantile Exchange (CME), decreased from $2.31 billion the previous day to $2.29 billion. The media explained that the decrease in open interest signifies weakening investor confidence in XRP's short- and medium-term outlook, with bearish investors maintaining short positions while bullish investors hesitate to enter new long positions.
Technical trends are somewhat mixed. XRP is trading below its 50-day Exponential Moving Average (EMA) of $1.19, 100-day EMA of $1.30, and 200-day EMA of $1.52, indicating a persistent short-term downtrend. Additionally, the Bollinger Band centerline at $1.11 and the downtrend line at $1.22 were presented as key resistance levels. Conversely, the daily Relative Strength Index is above 40 and rising towards the neutral line of 50, and the Moving Average Convergence Divergence (MACD) maintains a bullish cross, signaling an improvement in short-term buying momentum.
The media predicted that if XRP breaks above $1.11 and then surpasses $1.19 and $1.22, it could see further upside to $1.24 and then $1.30. Conversely, if it declines, the lower Bollinger Band at $0.99 is expected to act as the next key support level, serving as a benchmark for gauging new buying interest.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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