Bitcoin, Ether, and XRP are in the green as the broader cryptocurrency market has performed positively since Wednesday, following a poor start to the week.
XRP, the native coin of the Ripple ecosystem, is up 1% in the last 24 hours and is now trading at $1.38.
Despite its slight rally, the coin has underperformed in recent days due to low retail interest and macroeconomic uncertainty, which is accelerating risk-off sentiment.
XRP is down 19% so far this month, retesting the $1.1 support level last week.
Unless the short-term technical structure stabilizes and is supported by steady institutional interest, XRP could find it hard to embark on a sustainable recovery.
XRP stays below $1.4 as XRP Ledger’s on-chain activity soars
XRP is trading below $1.4 after adding 1% to its value since Wednesday. The positive performance comes amid a much-improved surge by the broader crypto market.
It also comes as the XRP Ledger (XRPL) has since Monday recorded a significant increase in the number of active addresses transacting on-chain.
Official data from CryptoQuant shows that the Active Addresses metric nearly doubled from approximately 17,000 addresses on Sunday to 32,700 on Wednesday.
The increase in the number of addresses transacting on XRPL suggests greater engagement with the network. This indicates growing interest in XRP.
Furthermore, this also shows rising confidence among holders as sentiment gradually improves.
However, investors should remain cautious when approaching the market as the growing network activity may signal volatility, leading to instability and price fluctuations.
Institutional interest in XRP remains steady, with mild inflows into XRP ETFs recorded in recent days.
Over the last five days, US-listed XRP ETFs have recorded inflows, with $3.26 million deposited on Tuesday.
According to SoSoValue, the cumulative inflow stands at $1.23 billion, and the net assets under management stand at $1.01 billion.
Steady inflows into ETFs indicate that institutions maintain a positive sentiment around XRP.
Despite that, retail interest in XRP remains poor as Open Interest (OI) falls to $2.30 billion on Thursday, down from the $2.44 billion recorded on Wednesday.
XRP’s OI has been on a downtrend since the record high of $10.94 billion in July, indicating that retail investors lack confidence in XRP’s ability to recover and sustain an uptrend.
XRP could dip below $1.3 amid weak technicals
The XRP/USD 4-hour chart is bearish as Ripple is trading well below its 50-day Exponential Moving Average (EMA) at $1.80, the 100-day EMA at $1.99, and the 200-day EMA at $2.18.
The three moving averages are declining, indicating a bearish momentum bias. The RSI of 42 is below the neutral level, signalling that the bears remain in control of the market.
The MACD lines are also below the neutral zone, adding further confluence to the bearish narrative.
Currently, the support-turned-resistance at $1.40 limits XRP’s upside, with the bears likely to push the price down towards the $1.25 support level. Below this is the Friday low of $1.12.
However, if XRP closes its daily candle above the $1.40 resistance level, it could extend its rally above Friday’s high at $1.54.
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