- XRP faces continued selling pressure as weak demand and cautious market sentiment push the coin toward the crucial $1 support level.
- Technical indicators remain bearish, with analysts watching for stronger buying activity to confirm a possible recovery.
XRP extended its losing streak on Tuesday as selling pressure increased and investor demand remained weak. The coin entered its fourth consecutive session of losses, with cautious market sentiment weighing on short-term recovery hopes.
Despite continued institutional interest through XRP exchange-traded funds (ETFs), analysts warn that stronger buying activity is needed to prevent a deeper correction.
XRP ETF Inflows Slow as Market Sentiment Weakens
Investor confidence around XRP remains fragile as the broader crypto market continues to show signs of caution. The Crypto Fear & Greed Index stayed in the Fear zone at 28, slightly improving from 26 the previous day and 24 the previous week.
Institutional demand has also slowed. XRP spot ETFs recorded zero inflows on Monday after attracting a small $107,000 inflow on Friday.
However, cumulative XRP ETF inflows have reached $1.48 billion, showing that institutional investors still maintain long-term interest in the asset. Analysts believe consistent inflows will be necessary to support a stronger XRP recovery.
Retail activity has also remained limited. Data from CoinGlass showed XRP perpetual futures open interest rising slightly to $2.31 billion from $2.10 billion. However, the increase has not been enough to signal strong market participation.
Ripple Nearly Shut Down During SEC Legal Battle
Ripple CEO Brad Garlinghouse recently revealed that the company considered shutting down after the US Securities and Exchange Commission (SEC) filed its lawsuit against Ripple in 2020.
Garlinghouse said he and Ripple co-founder Chris Larsen discussed dissolving the company and distributing XRP holdings to shareholders instead of entering a lengthy legal fight.
Ripple eventually decided to challenge the SEC in court. The decision became a major turning point after Judge Analisa Torres ruled that XRP itself was not a security.
The legal dispute officially ended in May 2025 after Ripple and the SEC settled, closing one of the most significant regulatory battles in the crypto industry.
XRP Technical Outlook Remains Bearish
XRP’s technical structure continues to favor sellers as the token trades inside a descending channel on the 4-hour chart.
The price remains below key moving averages, including the 50-day EMA at $1.16, the 100-day EMA at $1.26, and the 200-day EMA at $1.47. These levels continue to act as major resistance zones. RSI is hovering near 39, showing weak market strength and indicating that sellers remain in control.
XRP’s immediate support is positioned around $1.04. A break below this level could expose the token to further losses toward the lower boundary of the descending channel near $0.78.
On the upside, XRP needs to reclaim $1.12 before challenging the 50-day EMA at $1.16 and the 100-day EMA near $1.26. A move above these levels could improve the short-term outlook and restore confidence among buyers.
For now, XRP remains under pressure as bears continue to test the important $1 support level. Stronger demand and renewed buying activity will be key for any potential recovery.
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