Ripple (XRP) Breaks Below $1.10…Will it Hold the $1.05 Support Line?

▲ XRP/AI-generated image ©

XRP (Ripple) has fallen below $1.10, declining for four consecutive trading days amid geopolitical tensions and dampened investor sentiment. Analysis suggests that the momentum for a short-term rebound is weakening due to a slowdown in spot ETF inflows, decreased on-chain activity, and stagnant open interest.

According to investment media outlet FXStreet on July 8 (local time), XRP traded around $1.08, continuing its four-day losing streak. Amid a significant decline in risk asset appetite due to geopolitical tensions between the US and Iran, XRP also faced strong selling pressure. Specifically, slowed demand and reduced network activity were identified as key factors driving the price decline.

According to SoSoValue data, the XRP spot ETF recorded 'zero flow' on both July 7 and 8, with no inflows or outflows. However, cumulative net inflows remained at $1.49 billion and net assets at $1.02 billion, indicating continued confidence from long-term investors. The media explained that for the recovery to continue, new capital inflows must absorb selling pressure.

On-chain metrics also showed weakness. According to Santiment data, the number of active XRP addresses on July 8 was 14,500, a decrease of more than half from approximately 31,000 the previous day. Active users participating in sending and receiving on the XRP Ledger (XRPL) have been declining since peaking at around 43,000 on June 30. Furthermore, XRP futures open interest, according to CoinGlass, only slightly increased to 213 million XRP from the previous day, and has shown a gradual decline since the 238 million XRP recorded on June 23, indicating weakening investor sentiment among retail investors.

Technically, a short-term bearish trend prevails. XRP continues its downward trend, trading below its 50-day Exponential Moving Average (EMA) of $1.18, its 100-day EMA of $1.28, and its 200-day EMA of $1.49. While the Moving Average Convergence Divergence (MACD) indicates slight upward momentum, the Relative Strength Index (RSI) remains below the neutral line at 42, suggesting limited short-term rebound signals. The media suggested $1.05 as the short-term support level, with $1.02, where the Parabolic SAR is located, expected to be the key defense line thereafter. Conversely, if it recovers the 50-day EMA of $1.18, then $1.28 and $1.49 were suggested as the next resistance zones.

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