XRP (Ripple), Selling Pressure Accelerates… $1 Support Line on the Brink of Collapse

▲ XRP, decline/AI generated image ©

As XRP (Ripple) has fallen to $1.06, the key support level of $1 is once again being tested, due to a combination of individual investor exodus and market risk-aversion sentiment.

According to investment media FXStreet on August 3 (local time), XRP traded at $1.06 on Monday, continuing a broad bearish trend. The Crypto Fear & Greed Index remained in the 'Fear' zone at 28. If investor sentiment further deteriorates, a rebound will be limited, selling pressure will intensify, and there is a risk of falling below $1.

Institutional demand was relatively robust. According to SoSoValue, XRP spot ETFs saw a net inflow of $14.86 million by last Friday, an increase from $8.15 million the previous week. Cumulative net inflows rose to $1.51 billion, while net assets slightly decreased from $997 million to $989 million. If institutional investment in risky assets continues to expand, it could support price recovery in the short to medium term.

Conversely, individual investor demand for derivatives weakened. According to Coinglass, XRP perpetual futures open interest decreased from 2.26 billion XRP the previous day to 2.23 billion XRP on Monday. Compared to the 2.37 billion XRP recorded in July, the decline is more pronounced, indicating a contraction in investor position building and risk appetite.

The Coldcard hardware wallet attack also acted as a source of instability in the cryptocurrency market. It is reported that the attackers exploited a firmware vulnerability that had been dormant since 2021, stealing 1,367 Bitcoins (BTC) worth approximately $89 million from thousands of self-custody addresses. Yusuf Parak, a partner at ARP Digital, warned that vulnerable single-signature wallets remain at risk.

Technically, XRP continues its correction from its July high of $1.18 and remains below the 50, 100, and 200 Exponential Moving Averages (EMAs) on the 4-hour chart, clustered between $1.08 and $1.10. The Moving Average Convergence Divergence (MACD) histogram is slightly positive, and the Relative Strength Index (RSI) is around 45, but there is insufficient momentum to break through the upper EMA resistance. In case of a rebound, $1.08, $1.09, and $1.10 will act as resistance levels, respectively. On the downside, $1.06 and $1.05, where the SuperTrend indicator is located, are key support zones, and if these price levels break, short-term correctional pressure is expected to increase further.

*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.*