XRP, Increased Risk of Further Decline Due to Slowing Buying Momentum

▲ XRP/AI-generated image ©

XRP (Ripple) has fallen to the key support level of $1.40, and the slowdown in demand from institutional and retail investors is increasing 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. A warning was also issued that if it falls below the $1.40 demand zone amidst a broader market correction, the additional decline could deepen.

In terms of supply and demand, the inflow into XRP spot ETFs has slowed. The inflow until Wednesday of this week was approximately $5.42 million, a significant decrease compared to $55.39 million in the previous week. The inflow for Wednesday alone was only $2.42 million. According to SoSoValue, the cumulative inflow is $1.28 billion, and the total net assets are approximately $1.09 billion, but analysis suggests that consistent institutional demand is needed to maintain recovery.

Retail investor demand is also not strong. The Fear & Greed Index rose from 32 to 46 the previous day, indicating a slight improvement in investor sentiment, but XRP futures open interest remained at around $2.58 billion. This figure shows a significant difference from the open interest of $10.94 billion in July when XRP recorded an all-time high of $3.66. The media pointed out that a steady recovery in retail 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 slight 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 reduce short-term downward pressure. Subsequently, $1.54, $1.67, and $1.78 were presented as resistance levels, respectively. Conversely, if $1.41 is broken and even the $1.40 demand zone collapses, it is expected that the price could fall to lower levels, passing the weekly open 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.*