XRP Under Pressure as Weak Demand Keeps Downtrend Intact

XRP is trading just above $1.30 on Tuesday but continues to face downward pressure after losing value for three days in a row. Market sentiment is weak because of geopolitical tensions, causing both institutional and retail demand to drop, which limits any significant price rebound.

Institutional interest has declined noticeably. Investment products linked to XRP are experiencing steady outflows; about $2.3 million left U.S.-listed spot ETFs on Monday alone. Activity was already slow late last week, indicating a clear reduction in capital inflows. Although total cumulative inflows still hover around $1.21 billion, momentum has weakened, and assets under management are stabilizing rather than increasing.

Retail participation is also shrinking. Open Interest stands near $2.54 billion, far below the peak of $10.94 billion reached in July when XRP hit its highest point of $3.66. This drop signals a reduced appetite for risk and reluctance from traders to open new positions.

Technically, XRP remains in a clear downtrend on the 4-hour chart. The price is moving within a descending channel, regularly making lower highs and lower lows. Currently, it trades around 1.3269, just above a key support zone between 1.30 and 1.32. This level has held several times, but the buying pressure is clearly weakening.

The price is still below the moving average, which acts as resistance. Every attempt to bounce higher is met with selling, showing that sellers remain in control. Momentum indicators like RSI and MACD are flat, indicating no strong signs of reversal—just consolidation.

If XRP falls below 1.32, it may quickly slide toward 1.30, with further declines likely to targets around 1.26 and 1.22. On the upside, recoveries will probably encounter resistance between 1.34 and 1.36. A real change in trend would require the price to break above 1.36 and stay there, potentially opening the way to 1.40 and 1.47.

For now, this seems to be a temporary halt within a larger downtrend. The price is compressing near support, and such patterns often lead to further declines before any meaningful recovery. Until buyers push prices higher, rallies are more likely to be sold off rather than sustained.

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