XRP, Increased Risk of Further Decline Due to Weakening Buying Pressure

▲ XRP/AI-generated image ©

XRP (Ripple) has fallen to the key support level of $1.40, with weakening demand from institutional and individual investors contributing to further downward pressure.

According to investment media FXStreet on April 23 (local time), XRP is holding near the $1.41 support level as of Thursday, but has continued its decline for two consecutive trading days after falling from its weekly high of $1.46 the previous day. Warnings have also emerged that if it falls below the $1.40 demand zone amidst a broader market correction, further price drops could intensify.

In terms of supply and demand, the inflow into XRP spot ETFs has slowed. As of Wednesday this week, inflows totaled approximately $5.42 million, a significant decrease compared to $55.39 million in the previous week. Inflows on Wednesday alone were only $2.42 million. According to SoSoValue, cumulative inflows are $1.28 billion, and total net assets are around $1.09 billion, but consistent institutional demand is needed to maintain recovery.

Demand from individual investors is also not strong. The Fear & Greed Index rose from 32 to 46 the previous day, indicating some improvement in investor sentiment, but XRP futures open interest remained at around $2.58 billion. This figure shows a significant difference from the $10.94 billion open interest in July when XRP recorded an all-time high of $3.66. The media pointed out that consistent recovery in individual investor demand is a crucial condition for a bullish reversal.

Technically, burdens remain. XRP is moving near the 50-day exponential moving average of $1.41, but the 100-day line at $1.54 and the 200-day line at $1.78 are acting as resistance above. The breakout point for the long-term downtrend line is $1.67, which is far from the current price. The Moving Average Convergence Divergence (MACD) shows a slightly positive trend, and the Relative Strength Index (RSI) remains around 53, but the Money Flow Index (MFI) is close to 79, raising concerns about overbought conditions.

On the upside, recovering $1.43 is the first condition to alleviate short-term downward pressure. Subsequently, $1.54, $1.67, and $1.78 were presented as resistance levels in order. Conversely, if it breaks below $1.41 and even the $1.40 demand zone collapses, it is expected to fall to lower price levels, passing through the weekly opening price of $1.39.

*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.*