XRP eyes rebound above $1.40 despite sluggish market interest

Ripple ($XRP) appears to have found support at $1.38 on Friday, after a significant correction following its weekly high at $1.47, tagged on Wednesday. The remittance token shows subtle rebound signals, aiming for a short-term breakout above the $1.40 supply threshold.

Cooling market interest weighs on $XRP

Institutional demand for $XRP spot ETFs stalled on Thursday, as SoSoValue reported zero inflows. This marks a pause after three consecutive days of robust inflows: $3.87 million on Monday, $11.28 million on Tuesday, and $13.03 million on Wednesday.

Despite softening demand, cumulative inflows average $1.32 billion, up from $1.29 billion on Monday. Total assets under management stand at $1.08 billion, up slightly from $1.07 billion in the same period.

$XRP ETF flows | Source: SoSoValue

$XRP derivatives demand cooled on Friday to $2.59 billion, from $2.61 billion the previous day. Despite the $XRP price showing subtle signs of a rebound toward $1.40, softening retail demand suggests sellers are increasingly opening short positions, anticipating a break below the daily support at $1.38.

Meanwhile, with liquidity clustered around the $1.40 supply area, heightened volatility could challenge the bulls’ short-term objective.

$XRP Futures OI | Source: CoinGlass

Technical outlook: $XRP tests rebound strength despite limited upside

$XRP trades at $1.39, keeping a bearish near-term bias as price remains capped beneath a pack of key moving averages. The 50-day Exponential Moving Average (EMA) at $1.41 is the first barrier overhead, with the longer-term 100-day and 200-day EMAs at $1.50 and $1.72 reinforcing a broader downside tone.

A downtrend resistance line, whose break level aligns at $1.45, further limits bullish ambitions. Moreover, the Relative Strength Index (RSI) is near 49 on the daily chart, while a slightly negative Moving Average Convergence Divergence (MACD) histogram hints at lackluster momentum rather than an imminent upside breakout.

$XRP/USDT daily chart

On the downside, initial demand is seen at the SuperTrend line, now providing support around $1.32 and marking the first level where dip buyers could attempt to steady the market.

On the topside, a sustained close above the 50-day EMA at $1.41 would be the first sign of easing bearish pressure, exposing the descending trendline resistance near $1.45. Further gains would then bring the 100-day EMA at $1.50 into focus, ahead of the more distant 200-day EMA at $1.72.

(The technical analysis of this story was written with the help of an AI tool.)