XRP has pulled back after encountering resistance at $2.22, reflecting broader weakness in the cryptocurrency market on Monday. Despite this short-term setback, institutional interest in the cross-border payment token remains robust, with significant capital inflows and rising futures activity suggesting underlying strength. However, technical indicators point to a cautious near-term outlook, as the path of least resistance tilts slightly downward.
Currently trading around $2.17—down over 1% on the day—XRP is navigating a critical juncture. While bullish momentum is being tested, sustained demand from institutional investors and growing derivative market activity could pave the way for a renewed breakout attempt in the coming weeks.
👉 Discover how market sentiment shifts can impact XRP’s next price move.
Institutional Demand for XRP Remains Strong
According to CoinShares’ Digital Asset Fund Flow Weekly Report, XRP saw a notable surge in inflows last week, totaling $10.6 million**. This brings year-to-date inflows to **$219 million, with total assets under management (AUM) reaching $1.18 billion.
The report attributes this resilience in investor demand to macroeconomic uncertainties, including heightened geopolitical tensions and ambiguity around future monetary policy direction.
“We believe this resilient investor demand is driven by multiple factors, primarily escalating geopolitical volatility and uncertainty regarding the direction of monetary policy,” CoinShares noted in its weekly update.
This sustained institutional appetite underscores growing confidence in XRP as a strategic digital asset, particularly amid global economic shifts and increasing scrutiny of traditional financial systems.
Meanwhile, micro-level market dynamics—especially in derivatives—are also showing signs of improvement. XRP futures open interest (OI) has remained above $4 billion**, climbing from $3.54 billion on June 23 to $4.19 billion** by Monday—a 15.5% increase in less than two weeks.
Open interest refers to the total number of outstanding futures or options contracts that have not yet been settled. Rising OI alongside increasing trading volume typically signals growing market participation and trader confidence.
Derivatives market volume currently stands near $3 billion**, up 17% over the past 24 hours. Total liquidations amount to approximately **$3 million, with longs and shorts nearly balanced at $1.52 million and $1.53 million respectively—indicating a relatively neutral leverage sentiment despite recent price correction.
👉 See how open interest trends can signal upcoming volatility in XRP markets.
Technical Outlook: Downside Pressure Mounts Toward 200-Day EMA
XRP has been consolidating near $2.18** after rebounding from a key support level at **$1.90. However, it has failed to break above the $2.22 resistance, which aligns with the 100-day exponential moving average (EMA). This repeated rejection suggests persistent selling pressure at higher levels.
The path of least resistance now appears to be downward. The Relative Strength Index (RSI) has dipped slightly below the neutral 50 level, indicating weakening bullish momentum. If the RSI continues to decline into oversold territory, it could confirm bearish dominance in the short term.
A key support zone lies at the 200-day EMA, currently around $2.10. Should downward momentum persist, this level is likely to be tested in the coming trading sessions.
Additionally, the SuperTrend indicator triggered a sell signal on May 31, reinforcing the bearish bias. The SuperTrend is a volatility-based trend-following tool that uses Average True Range (ATR) data to generate dynamic support and resistance levels.
When the price moves below the SuperTrend line, the indicator shifts from green to red, confirming a bearish breakout. Traders often use this signal to exit long positions or initiate short trades.
If XRP falls below the $2.10 support, further downside targets may come into play:
- $1.90 – Previously tested on June 22
- $1.80 – Psychological support level
- $1.61 – Key low tested in April
On the upside, renewed buying pressure could push XRP toward $2.33**, representing a 7.44% gain from current levels. This level was briefly tested on June 16 and could act as intermediate resistance before a potential run toward June’s high of **$2.65—a 22% upside from current prices.
Frequently Asked Questions (FAQs)
Q: What drives institutional investment in XRP?
A: Institutional interest in XRP is primarily fueled by its utility in cross-border payments, regulatory clarity developments, and macroeconomic factors such as monetary policy uncertainty and geopolitical risk.
Q: How does open interest affect XRP price movements?
A: Rising open interest alongside increasing volume often signals growing market confidence and potential for larger price moves—either up or down—depending on directional bias.
Q: What does a negative funding rate mean for XRP traders?
A: A negative funding rate means perpetual contract prices are below spot prices, so short position holders pay longs. This often occurs during downtrends and can indicate bearish sentiment.
Q: Why is the 200-day EMA important in technical analysis?
A: The 200-day EMA is widely regarded as a major long-term trend indicator. Prices above it suggest bullish trends; prices below indicate bearish conditions.
Q: Can XRP break past $2.22 again?
A: Yes, but sustained volume and positive market sentiment are needed. A breakout above $2.22 could open the path toward $2.33 and eventually $2.65 if momentum builds.
Q: What happens if XRP drops below $1.90?
A: A breakdown below $1.90 could trigger further selling pressure, potentially targeting support at $1.80 and $1.61—levels previously defended earlier in the year.
👉 Learn how to interpret key technical signals before the next major XRP breakout.
Conclusion
While XRP faces short-term headwinds at $2.22, strong institutional inflows and rising derivatives activity reveal underlying strength. With year-to-date inflows exceeding $200 million and open interest climbing steadily, investor conviction remains intact despite market-wide caution ahead of key economic events like Fed Chair Jerome Powell’s remarks.
Technically, the coin is at a crossroads. A drop toward the 200-day EMA at $2.10 is possible, but any strong rebound could re-energize bulls aiming for $2.33 and beyond.
For traders and investors alike, monitoring both macro developments and on-chain metrics will be crucial in navigating XRP’s next phase—whether it’s a consolidation before a breakout or a deeper correction testing major support levels.
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