- Technical Analysis: XRP trading under pressure amid rising downside risks:


XRP is trading above the support level at $1.82 at the time of writing, while its rally has been limited to below $2.00. The token is also trading below the bearish 50-day Exponential Moving Average (EMA) at $2.17, the 100-day EMA at $2.35, and the 200-day EMA at $2.43, confirming bearish outlooks.

The Moving Average Convergence Divergence (MACD) indicator on the daily chart has shown a continuous sell signal since Tuesday, prompting investors to reduce their market exposure. The red histogram bars below the signal line are expanding, indicating seller dominance in the market.

Although the Relative Strength Index (RSI) remains at 35 on the same chart, it is still within the bearish trend zone. If the RSI drops further into oversold territory, counteracting factors could lead to a 14% correction in XRP’s price toward its April low of $1.61.

Daily chart of XRP/USDT pair

Nevertheless, the immediate support level at $1.82 could act as a barrier against further selling, encouraging investors to increase their holdings. A close above $2.00 may signal the first step toward a potential bullish reversal. The 50-day EMA at $2.17 is expected to serve as a support level, reinforcing a bullish outlook above the downtrend line.
XRP2.81%
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- The XRP price remains below $2.00 amid increasing downside risks and declining retail investor demand:
The XRP price is still above the support level of $1.82 amid ongoing bearish signals and a 14% downside risk.
Demand in the retail sector is waning, as evidenced by the decrease in open interest in futures trading to $3.31 billion.
The failure of an $18 million inflow of XRP into U.S.-listed exchange-traded funds (ETFs) to spark a price rebound indicates a broader risk-avoidance trend.

Ripple (XRP) is trading between a key support level at $1.82 and a resistance level at $2.00 at the time of writing this report on Thursday, reflecting the overall stagnation in the cryptocurrency market.

Despite the cross-border token remaining above the immediate support level, which was also tested on November 21, the overall outlook remains bearish, as evidenced by declining retail investor interest.

XRP Price Declines Amid Reduced Retail Demand
XRP is experiencing a significant drop in retail investor interest, negatively impacting the derivatives market and leading to broader sell-offs. CoinGlass data shows that open interest in futures contracts reached $3.31 billion on Thursday, down from $3.52 billion the previous day and $3.71 billion on Tuesday.

Since the sudden crash on October 10, the derivatives market has been in noticeable stagnation, with open positions ranging between $3 billion and $4 billion. Before the debt reduction, open interest was at $8.36 billion, confirming decreased retail investor interest and demand.

Sustained support for rising prices requires continuous growth in open interest. Otherwise, recovery may remain an elusive dream as investors stay cautious.

Open Interest in XRP | Source: CoinGlass

On the other hand, institutional investors have shown immense interest in the token since the launch of the U.S. spot XRP ETFs, characterized by steady inflows.

XRP ETF funds recorded nearly $18 million in inflows on Wednesday, a significant increase from the $8.5 million recorded on Tuesday. The cumulative net inflows amounted to $1.03 billion, while the net asset value (NAV) stood at $1.14 billion, according to SoSoValue data.

Steady inflows into ETF funds support positive sentiment, potentially making XRP attractive not only to institutional investors but also to retail traders.

XRP ETF Trading Statistics | Source: SoSoValue
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