Will Ripple (XRP) Hold $1.35? ...Downward Risk Expands Despite ETF Inflows

▲ Ripple (XRP) ©Godasol

XRP (Ripple) is losing upward momentum around $1.37 despite 10 consecutive trading days of capital inflows into its spot ETF. With derivative demand contracting from its August peak and technical indicators weakening, whether the $1.35 support level holds will determine further declines.

According to investment media FXStreet on September 1 (local time), XRP traded at $1.37 after rising to $1.70 on the 17th of last month, with further gains limited. The current outlook is neutral to moderately bullish, but $1.35, where key moving averages are located, is considered a critical support level for a rebound.

The overall market's Fear & Greed Index rose from 62 to 69 the previous day, maintaining the "greed" zone. Approximately $6 million flowed into the XRP spot ETF on August 31, continuing its net inflow streak for 10 consecutive trading days. Although this was a decrease from the $26 million of the previous trading day, the cumulative net inflow reached $1.66 billion, and the average net assets were $1.45 billion. The media analyzed that sustained demand for related investment products could alleviate downward price pressure.

Conversely, the derivatives market showed a slowdown in demand. XRP perpetual futures open interest slightly increased from 2.2 billion to 2.29 billion the previous day but remained significantly below the August high of 2.78 billion. The overall trend of decreasing open interest reflects a weakening risk appetite, and if selling pressure intensifies, it could put additional strain on the spot market.

Technically, XRP remains above its key Exponential Moving Averages (EMAs), maintaining a short-term bullish structure. The Relative Strength Index (RSI) indicated a buying preference at approximately 62, but its strength has weakened compared to before. The Moving Average Convergence Divergence (MACD) slightly dipped below its signal and baseline, indicating a weakening of bullish conviction. However, the current signals are assessed as more indicative of slowing momentum rather than a clear trend reversal.

The primary support level is $1.35, where the 200-day EMA is located. If this price breaks, $1.21, where the 50-day and 100-day EMAs converge, is presented as the next line of defense. As long as XRP remains above key support levels, a decline can be interpreted as a correction within the overall uptrend, but a break below $1.35 could increase the likelihood of further weakness.

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