XRP, Why Did It Stop at $1.40? Can It Break Through?

▲ Ripple (XRP) ©Dasol Ko

XRP continues to trade sideways around $1.40, showing a stalled upward movement due to slowing demand from retail and institutional investors.

According to investment media FXStreet on May 4 (local time), XRP (Ripple) is currently trading around $1.40, remaining trapped in a box range between $1.30 and $1.40. Analysis suggests it has failed to establish a clear direction due to weakening demand across digital asset investment products and derivatives.

In particular, a decrease in open interest indicates a slowdown in investor sentiment. XRP futures open interest remains around $2.5 billion, a significant drop from the $10.94 billion recorded in July last year. This suggests that retail investors remain skeptical about the sustainability of a short-to-medium-term upward trend.

Institutional demand is also failing to gain momentum. The XRP spot ETF recorded a net outflow of $35,210 last week, with cumulative inflows remaining at $1.29 billion and net assets at approximately $1.06 billion. The slowdown in demand for investment products is seen as a factor limiting price rebound.

Technically, overhead resistance is also clear. The price is trading below the overlapping zone of the 50-day exponential moving average at $1.41 and the Bollinger Band midline, with upward attempts consistently being limited. The Relative Strength Index remains neutral around 50, and the Moving Average Convergence Divergence (MACD) also shows a weak negative trend, indicating a lack of clear momentum.

The key going forward is whether it can break out of the box range. On the upside, if it breaks $1.41, $1.47, and further $1.50 and the 100-day moving average are expected to act as major resistances. Conversely, if the $1.36 support level breaks, downward pressure will increase, opening up the possibility of further correction.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*