Ripple’s XRP began the week positively but has underperformed over the last two days.

The coin has lost 5% of its value in the last 24 hours, dropping below the $1.4 level. 

The bearish performance comes amid low activity in both the institutional and retail environments.

If the momentum indicators fail to improve, XRP could retest the Sunday low of $1.35 in the coming hours or days. 

XRP has been underperforming since reaching its record high of $3.66 in July.

The fourth-largest cryptocurrency has struggled to sustain rebounds, leading to volatile price fluctuations, with retail demand on the decline.

According to CoinGlass, the XRP futures Open Interest (OI) stands at $2.31 billion on Thursday, down from the $2.45 billion recorded on Wednesday.

The futures OI peaked at $10.94 billion in July and has been declining since then.

This decline in retail activity mirrors the dip in XRP’s price action in the last few months.

The declining OI means that traders are closing their positions in droves and refusing to open new ones.

Thus, leaving XRP vulnerable to market pressure. 

Furthermore, XRP spot Exchange-Traded Funds (ETFs) are experiencing a steady decline in investor interest.

Data obtained from SoSoValue revealed that US-listed XRP spot ETFs remained quiet, with no flows, leaving cumulative inflows at $1.23 billion and net assets under management at $1.06 billion.

With institutional interest declining, the overall risk appetite also diminishes.

The market sentiment is currently weak and is dampening XRP’s recovery potential.

It is also increasing the probability of an extended bearish trend.

XRP is very bearish after losing 5% of its value today.

It has lost the $1.40 support and could dip lower over the next few hours or days. 

Despite the Moving Average Convergence Divergence (MACD) indicator on the daily chart having sustained a buy signal since Saturday, the overall structure remains bearish.

Currently, the 50-day Exponential Moving Average (EMA) at $1.71, the 100-day EMA at $1.92, and the 200-day EMA at $2.13 are trending lower and limiting the upside for XRP.

If the sell-off continues, XRP may retest last Friday’s low at $1.35.

The RSI of 46 is below the neutral 50 and facing downwards, indicating a growing bearish momentum.

XRP’s Money Flow Index (MFI) has increased to 50, suggesting steady risk appetite. 

If this metric increases, it would confirm a bullish shift, allowing XRP to break out towards the $1.67 resistance level. 

However, XRP could face resistance close to the $1.50 psychological level, and another selling pressure at $1.54, which aligns with the February 6 high.

The post XRP bears eye $1.35 support level amid subdued demand appeared first on Invezz

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