Ripple’s XRP has been one of the worst performers among the top 10 cryptocurrencies by market cap in recent weeks.
The coin is down by less than 1% in the last 24 hours and is currently trading around $1.6 per coin.
XRP is attempting to recover from last week’s sharp decline that tested support at $1.50.
However, weakening on-chain metrics and declining retail participation could make the recovery harder for XRP.
Retail demand remains poor despite ETF inflows
Institutional investors continue to accumulate XRP despite the broader cryptocurrency market recording losses in recent weeks.
Official data revealed that spot XRP Exchange-Traded Funds (ETFs) recorded inflows of nearly $9.29 million on Friday after recording the largest single-day outflow since launch of nearly $48.64 million on Thursday.
The ETF flows serve as a gauge for market sentiment, with steady inflows suggesting that investors are confident in XRP’s price performance in the near term.
However, retail interest in XRP remains poor, as OI dropped to $2.81 billion on Monday, from $2.97 billion the previous day.
Futures Open Interest (OI) tracks the total notional value of outstanding futures contracts, making it a key indicator of market participation.
The dip in OI indicates that retail investors lack confidence in XRP’s ability to maintain its upward momentum.
Furthermore, it indicates that traders are closing positions rather than opening new ones, making it more challenging for XRP to embark on a sustainable recovery move.
In addition to that, addresses actively transacting on the XRP Ledger (XRPL) corrected to approximately 18,000 as of Sunday, suggesting low on-chain participation.
The Active Addresses metric rose to roughly 21,500 on Saturday but quickly erased those gains as the broader cryptocurrency market recorded massive losses on Sunday.
XRP bulls look to push higher despite low retail interest
The XRP/USD 4-hour chart is extremely bearish as XRP risks dropping below its daily open price of $1.59.
The 50-day Exponential Moving Average (EMA) at $1.96, the 100-day EMA at $2.10, and the 200 the 200-day EMA at $2.25 provide stiff resistance levels in the near term, ensuring that the bears remain in control.
The technical indicators suggest that the bears are still in control.
The Moving Average Convergence Divergence (MACD) line holds below the neutral zone on the 4-hour chart, prompting investors to reduce their exposure.
However, the Relative Strength (RSI) at 36 on the same chart is edging slightly higher, hinting at seller exhaustion.
If the recovery continues, XRP could rally towards the first major resistance level at $1.96 over the next few days.
The $2.21 resistance level remains an unlikely scenario in the near term.
However, if the daily candle closes below the $1.59 level, XRP could retest the next demand zone at $1.50.
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