XRP, Institutional and Individual Investors Exiting Together... $1 Collapse 'Red Flag'

▲ XRP/AI generated image

A warning has been issued that XRP could fall to the $1 level amid a simultaneous slowdown in demand from institutional and individual investors.

According to cryptocurrency media outlet FXStreet on August 5 (local time), XRP fell for three consecutive trading days, approaching the psychological support level of $1.05. Despite expectations for resumed negotiations between the US and Iran over the Strait of Hormuz, buying interest did not revive, and a short-term bearish trend became evident.

The movement of US-listed XRP spot ETFs, which indicates institutional investment demand, also slowed down. Net inflows on Monday amounted to only $1.15 million, and no significant capital inflows were observed on Tuesday. Cumulative net inflows remained at $1.51 billion, and total assets under management stayed at $1 billion.

The perpetual futures market, primarily participated in by individual investors, also lost momentum. XRP open interest slightly increased from 2.12 billion XRP the previous day to 2.14 billion XRP, but it fell significantly short of the July high of 2.37 billion XRP. Despite a short-term rebound, the overall trend did not break away from its decline.

Ripple made strategic investments in ZILO, a transfer technology platform for asset managers, and Liquid, a digital ownership liquidity company. Nigel Khakoo, Ripple's Senior Vice President of Transactions and Markets, stated, “Both companies provide regulated digital transfer agency infrastructure and the liquidity needed for issuance and collateral movement.”

XRP is trading below its 50-day, 100-day, and 200-day Exponential Moving Averages (EMA). The Relative Strength Index (RSI) has fallen to the early 40s on a daily basis, and the Moving Average Convergence Divergence (MACD) also showed bearish signals. If XRP fails to recover $1.08, then $1.05 and $1 will act as support levels in sequence, and a breakthrough of $1.12 and $1.20 is needed for an upward reversal.

[Article Key Summary]

-XRP's risk of falling to the $1 level has increased due to a simultaneous slowdown in demand from institutional and individual investors.

-Cumulative net inflows for XRP spot ETFs remained at $1.51 billion, and open interest also fell short of the July high.

-If XRP fails to recover $1.08, then $1.05 and $1 will serve as key support levels.

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