Technical Analysis: XRP Momentum Indicators Point to Bearish Signs


The XRP price is trading at $1.37 on Friday, maintaining a near-term downtrend, as it holds within a broader parallel descending channel and remains below all major exponential moving averages. The 50-day exponential moving average at $1.40 is the closest support level, while the 100-day exponential moving average at $1.51 and the upper boundary of the channel near $1.56 form a multi-layer overhead barrier.

Momentum is weak, as the Relative Strength Index on the daily chart at 45 remains below the neutral 50 line, while the MACD indicator has slipped further into negative territory—suggesting that upward moves are likely to remain vulnerable as the price trades below these moving averages.

On the other hand, initial demand is observed around the horizontal support zone near $1.30, where buyers previously defended the lower end of the recent range, before the distant lower boundary of the channel near $0.75 in case selling pressure accelerates.

On the upside, a daily close above the 50-day exponential moving average at $1.40 would be the first step toward easing immediate bearish pressure, with additional resistance appearing at the 100-day exponential moving average around $1.51 and then at the top of the channel near $1.56; only a sustained breakout above these levels would start to challenge the broader bearish structure, ahead of the farther horizontal resistance at $1.90.
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XRP Price Analysis: Outflows from ETFs and declining momentum suggest a deeper correction:
XRP price hovers around $1.37 on Friday after recording four consecutive red candles this week and losing over 4%.
U.S.-listed spot ETFs recorded a new outflow of $5.83 million on Thursday, indicating a cautious stance.
Technical forecasts point to weakening momentum indicators, hinting at a deeper correction.

XRP's price trades at $1.37 on Friday, after experiencing four consecutive daily losses this week. Weakening momentum and changing institutional investor sentiment, reflected in new outflows from ETFs, negatively impact price movement, indicating a deeper correction ahead.

Institutional demand shows signs of caution
Data from SoSoValue shows that XRP spot ETFs recorded outflows of $5.83 million on Thursday, ending a two-day streak of inflows. If this outflow continues and intensifies, XRP's price could see further corrections.

Daily chart of net XRP spot inflows to ETFs. Source: SoSoValue

- Some signs of optimism:
Aside from the cautious signals shown by institutional demand, derivatives data indicate some optimism for XRP. The buy-to-sell ratio for XRP on CoinGlass reached 1.03 on Friday, approaching its highest level in a month after remaining mostly in the red since early April. This ratio, exceeding one, reflects a bullish market trend, with more traders betting on higher prices.

Chart of the buy-to-sell ratio for XRP. Source: Coinglass

Open interest funding rate data for XRP from CoinGlass turned positive on Friday, reaching 0.0015%, indicating that buyers are paying sellers and expecting a moderate bullish trend.

XRP funding price chart. Source: Coinglass
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