Ripple (XRP) Recovers $1.07, but ETF Outflows and Decline in Open Interest 'Limit' Rebound

▲ XRP/AI generated image ©

While XRP (Ripple) rebounded from the $1.03 support level and recovered to $1.07, the sustainability of this short-term rebound is being questioned due to continued outflows from Ethereum spot ETFs and shrinking demand from individual investors. However, technical indicators also show signs of increasing upward momentum.

According to investment media FXStreet on July 2 (local time), XRP rebounded to above $1.07 after falling to $1.03 amidst a broader sell-off in the cryptocurrency market. The news of positive progress in the US-Iran Doha negotiations contributed to a partial recovery in risk asset appetite, serving as a backdrop for the rise.

However, institutional investors' sentiment remains subdued. According to SoSoValue data, XRP spot ETFs saw net outflows of approximately $2 million on Wednesday and $3 million on Tuesday. The media analyzed that two consecutive days of outflows indicate that risk-averse sentiment still prevails, potentially limiting the extent of the short-term rebound.

Demand from individual investors also appears to be slowing. Open interest across the futures market, including the Chicago Mercantile Exchange (CME) in the US, decreased from $2.31 billion the previous day to $2.29 billion. The media explained that the decline in open interest signifies weakening investor confidence in XRP's short- to medium-term outlook, with bearish investors maintaining short positions while bullish investors hesitate to enter new long positions.

Technical trends are somewhat mixed. XRP is trading below its 50-day Exponential Moving Average (EMA) of $1.19, 100-day EMA of $1.30, and 200-day EMA of $1.52, maintaining a short-term downtrend. The Bollinger Bands centerline at $1.11 and the downtrend line at $1.22 were also cited as key resistance levels. Conversely, the daily Relative Strength Index (RSI) is above the 40-mark and rising towards the neutral 50-mark, and the Moving Average Convergence Divergence (MACD) maintains a bullish crossover, indicating improving short-term buying momentum.

The media projected that if XRP breaks above $1.11, then surpasses $1.19 and $1.22, it could open up room for an ascent to $1.24 and then to $1.30. Conversely, if it falls, the lower Bollinger Band at $0.99 is expected to act as the next key support level, serving as a benchmark to gauge the influx of new buying interest.

*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.*