The cryptocurrency market has continued its bearish performance this week, with over $50 billion wiped out from the market in the last 24 hours.
The total cryptocurrency market cap dropped from $2.92 trillion on Thursday and now stands at $2.87 trillion.
The bearish performance saw Bitcoin briefly drop below $84k, but it is now trading above $85k again.
Meanwhile, altcoins like XRP recorded bigger losses, retesting key support levels.
XRP retests $1.77 support as retail demand narrows
XRP is down 4% in the last 24 hours, making it the worst performer among the top 10 cryptocurrencies by market cap.
The bearish performance comes amid waning retail demand for the cryptocurrency.
CoinGlass data shows futures Open Interest (OI) at $3.22 billion, down from the $3.31 billion recorded on Thursday and $3.52 billion on Wednesday.
XRP’s OI has significantly declined since the October 10 flash crash and has failed to recover.
The OI is fluctuating between $3 billion and $4 billion, down from the $8.3 billion recorded before October 10.
The declining OI emphasizes the prevailing low retail interest and demand.
For XRP to reclaim the $2.0 mark and rally higher, a sustained uptick in the OI is needed in the near term.
However, the current price action hasn’t affected institutional demand for XRP products.
XRP spot Exchange Traded Funds (ETFs) in the United States have recorded massive inflows over the past five weeks.
XRP ETFs recorded approximately $18 million in inflows on Wednesday, a significant increase from the $8.5 million posted on Tuesday.
Thanks to this latest addition, the net inflow now stands at $1.03 billion, with net assets at $1.14 billion.
XRP is still under pressure as the bearish trend persists
The XRP/USD 4-hour chart is bearish thanks to the coin losing 4% of its value in the last 24 hours.
XRP is now trading above $1.81 per coin after retesting the $1.77 support level a few hours ago.
The technical outlook remains bearish despite the $1.77 support level holding.
The Moving Average Convergence Divergence (MACD) indicator on the 4-hour chart maintains the sell signal flashed earlier this week.
Thus, encourages investors to reduce exposure to the market.
The Relative Strength Index (RSI) on the same chart stands at 35 and could enter the oversold region if the bearish trend persists.
The poor RSI could see XRP drop lower and retest April’s low of $1.61. The next support level stands at $1.45.
However, the immediate support at $1.77 could work as a shield against further selling, prompting investors to increase exposure.
If XRP rallies in the near term and closes above $2.0, the cryptocurrency could extend its run towards the 50-day EMA at $2.17.
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