XRP wobbles as derivatives market cools…rebound expectations dashed

▲ Ripple (Ripple, XRP) ©CoinReaders

XRP (Ripple) is once again facing downward pressure, unable to sustain its short-term rebound attempts due to a combination of a shrinking derivatives market and worsening investor sentiment.

According to investment specialized media FXStreet on April 9 (local time), XRP has continued its weakness for two consecutive days, falling to around $1.33 after retreating from its weekly high of $1.40. The overall market sentiment is being weighed down by uncertainties surrounding a US-Iran ceasefire, causing XRP to align with the downward trend of major cryptocurrencies.

Geopolitical tensions remain unresolved. Iran has restricted passage through the Strait of Hormuz, and US President Donald Trump has mentioned the possibility of resuming attacks if negotiations fail. Amidst this situation, the Fear & Greed Index remained in the extreme fear zone at 14, and investors lack confidence in the sustainability of a short-term rebound.

In particular, the contraction of the derivatives market is putting pressure on the price. Open interest decreased from $2.5 billion to $2.38 billion in just one day, reflecting a weakening demand from individual investors. If this trend continues, XRP is likely to face further downward pressure towards the $1.30 support level.

Technically, a bearish structure is also evident. XRP remains below $1.42 (50-day EMA), $1.58 (100-day EMA), and $1.83 (200-day EMA), with all major moving averages acting as upper resistance. The Relative Strength Index is at 44, which is not an oversold zone but indicates a weak trend, and the Moving Average Convergence Divergence (MACD) also shows only limited rebound signals.

Short-term resistance levels are identified at $1.42, followed by the $1.58 and $1.73 levels where the downtrend line is located, as key hurdles. On the other hand, $1.30 and $1.28 are mentioned as short-term support levels, but given the lack of support from moving averages, any rebound attempts are likely to be limited.

*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.*