Ripple (XRP) Price Falls Amid Mixed Market Signals
Ripple (XRP) continued to drop for the second day in a row. On Friday, it traded at $2.06. Despite steady inflows into XRP spot ETFs, market sentiment remains weak. If XRP falls below current support, it could drop further to Monday’s low of $1.98. Investors are watching closely ahead of the Federal Reserve’s meeting on December 10.
Steady Inflows in XRP ETFs, but Derivatives Show Weak Demand
XRP spot ETFs have seen steady interest since their launch on November 13. On Thursday, inflows reached $13 million, continuing a 14-day streak of positive gains according to SoSoValue data. In total, XRP ETFs hold $881 million in net assets with $887 million in inflows. Crossing $1 billion could bring in more investment.
While ETF demand is solid, XRP derivatives show weaker interest. Futures Open Interest (OI) dropped to $3.71 billion on Friday from $3.85 billion the day before. OI has been declining since mid-July, after XRP hit a high of $3.66. A deleveraging event on October 10 caused losses for many traders, hurting confidence. Lower OI suggests investors doubt XRP’s ability to keep rising, limiting price rebounds.
Technical Analysis: XRP Faces Resistance and Bearish Signals
XRP is trading below major moving averages. It sits at $2.06, below the 50-day EMA at $2.30. The 100-day and 200-day EMAs stand higher at $2.46 and $2.49, creating resistance.
The MACD is about to cross down, showing weakening momentum. The RSI is at 42, under the neutral line, indicating bearish pressure. The Parabolic SAR provides support near $1.88.
Resistance is strong near $2.63 from a descending trend line starting at $3.66. Support is near $1.83 from a rising trend line. A daily close above $2.30 would reduce selling pressure and open the way to higher levels. Falling below $1.83 could resume the downtrend and bring lower prices.
