XRP shows rebound signs despite weakening technical outlook
- XRP rebounds above $1.40 from weekly lows of $1.32, as bullish investors actively defend key support at the 100-day and 200-day EMAs.
- XRP spot ETFs recorded $8 million in ETF inflows on Thursday, signaling fresh institutional support.
- XRP risks deeper losses amid a weakening technical structure, with the RSI in bearish territory and a MACD sell signal.
Ripple (XRP) trades largely in bearish hands on Friday near $1.40. Although the remittance token has stabilized after a sharp sell-off from weekly highs of $1.53 to lows around $1.32, the path of least resistance remains downward, unless buyers affirm a daily close above the pivotal $1.40 level.
The prevailing technical outlook appears bearish in the short term but neutral to bullish in the medium term. Support remains relatively firm but sustained gains would require support across the board, from retail traders to institutional investors.
XRP attracts fresh capital inflows
US-listed XRP spot Exchange-Traded Funds (ETFs) recorded $8 million in inflows on Thursday, drying headwinds in the broader crypto market. The token has $1.8 billion in cumulative inflows and $1.6 billion in net assets under management, according to SoSoValue. This underpins returning institutional support amid more volatile flows, helping cushion against prevailing losses.
The derivatives market is facing cooling retail demand, as perpetual futures Open Interest (OI) drops to 2.3 billion XRP on Friday, from 2.4 billion the previous day. In comparison, OI pales next to the September peak of 2.5 billion XRP and the August high of 2.8 billion XRP. Diminishing retail demand implies a weaker tailwind to support a steady uptrend.
Technical analysis: XRP reclaims $1.40 demand area
XRP bulls are trying to take back control of the trend after this week's persistent pullback from highs around $1.53 to lows near $1.32. This recovery could be an uphill task, as investor focus shifts to next week's release of the United States (US) Consumer Price Index (CPI) report and the Federal Reserve (Fed) October monetary policy decision.
The pair holds above a dense cluster of Exponential Moving Averages (EMAs), while the SuperTrend at $1.30 reinforces the constructive backdrop. Despite this supportive structure, momentum is soft as the Relative Strength Index (RSI) near 44 drifts below midline and the Moving Average Convergence Divergence (MACD) remains negative with a weakly bearish tone, suggesting upside progress could be gradual rather than impulsive.
Immediate support is seen at the 50-day EMA near $1.40, followed by the 200-day EMA at $1.38 and then the 100-day EMA at $1.34, with the SuperTrend baseline around $1.30 marking a deeper bullish line in the sand. On the topside, the broader downtrend structure leaves the prior break zone near $1.64 as the first notable resistance, ahead of the higher trendline reference around $1.70, where sellers could reassert control if the rally extends.
XRP's outlook on the weekly timeframe remains neutral to bullish, with spot holding just above the 200-week EMA at $1.37 while capped by the 50-week EMA at $1.52 and the 100-week EMA at $1.58.
The SuperTrend line at $0.94 sits well below price and reinforces a medium-term floor, while the MACD indicator stays positive, hinting at mildly constructive momentum. The RSI around 51 underscores a balanced market, suggesting that bulls lack the conviction to reclaim the overhead trend EMAs for now.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
