- Retail investors are selling off Bitcoin, Ethereum, and XRP, pushing prices lower amid risk-off sentiment.
- XRP ETFs see small inflows, but technical indicators suggest further declines are likely.
Bitcoin, Ethereum, and XRP are under significant selling pressure as retail investors exit the market, leaving major cryptocurrencies vulnerable amid risk-off sentiment. At the time of writing, Bitcoin holds just above $70,000 after testing an intraday low of $69,922, reflecting weakening demand from both retail and institutional players.
Retail Flight Reduces Futures Open Interest
Bitcoin’s futures Open Interest (OI) dropped to $48.53 billion on Thursday from $50.5 billion the day before. OI measures the notional value of outstanding futures contracts, and a persistent decline diminishes liquidity, weakening price support. This comes after a record $94.1 billion OI in October, which preceded a $19 billion liquidation in leveraged crypto positions.
Ethereum is showing similar weakness, with futures OI declining to $25.6 billion from $26.3 billion. The token tested support at $2,068 before stabilizing above $2,000, but downward pressure remains strong.
XRP’s futures OI also fell, hitting $2.57 billion on Thursday from $2.61 billion, extending a broader downtrend from its July all-time high of $10.94 billion.
Technical Indicators Signal Continued Downtrend
Bitcoin’s technical indicators show a bearish outlook. The Relative Strength Index (RSI) sits at 20, marking oversold conditions, while the MACD remains below its signal line. If Bitcoin closes below $70,000, losses could extend toward $65,260, a level last tested in October 2024.
Ethereum faces similar resistance, with the 50-, 100-, and 200-day Exponential Moving Averages (EMAs) capping recovery potential at $2,899, $3,105, and $3,232, respectively.
XRP, down roughly 9.5% intraday, trades below $1.40, with its 50-, 100-, and 200-day EMAs at $1.90, $2.07, and $2.23. The RSI for XRP is 21, reinforcing a strong bearish grip. A further drop could test the October low near $1.25.
XRP ETFs Provide Small Support Amid Sell-Off
Despite aggressive retail selling, XRP spot Exchange-Traded Funds (ETFs) have seen inflows for two consecutive days, totaling nearly $5 million on Wednesday. The cumulative inflow stands at $1.21 billion, with net assets under management at $1.07 billion, offering minor support amid the broader downtrend.
Investors remain cautious as the market navigates risk-off sentiment. While brief recoveries are possible, prevailing technical indicators suggest continued vulnerability for Bitcoin, Ethereum, and XRP.
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