Key takeaways
- XRP continues to consolidate around the $1.10 mark.
- The bulls are keeping the price above the $1.05 support level.
Ripple’s XRP traded lower on Thursday, staying near $1.10 as the token attempted to reverse a downtrend that has been ongoing since mid-May.
This downward trend comes as institutional demand for XRP-linked investment products continues to strengthen, even as retail traders remain cautious amid ongoing geopolitical tensions.
Geopolitical uncertainty continues to impact markets
Risk appetite remains fragile as tensions between the US and Iran continue to escalate.
Recent developments included renewed military exchanges between the two countries, with US President Donald Trump stating that Iran was slow to agree to a peace agreement. After those statements, the US military launched additional strikes, which it described as defensive actions.
Later, the Iranian Islamic Revolutionary Guard Corps launched attacks targeting American military facilities in Kuwait, Bahrain, and Jordan.
The uncertainty has contributed to volatility in financial and cryptocurrency markets, limiting investors’ appetite for risk.
Despite the uncertain macro environment, institutional investors continue to add exposure to XRP.
Data from CoinGlass shows this XRP Spot ETFs It attracted nearly $1.2 million in net inflows on Wednesday, following nearly $7.44 million in inflows on Tuesday.
according to Coinglass dataOpen interest (OI) for XRP futures stood at around $2.43 billion on Thursday.
A declining open interest environment usually indicates decreased speculative activity and limited conviction among short-term market participants.
XRP Price Analysis: The recovery attempt is facing significant resistance
XRP is currently trading near $1.10, but the broader technical picture remains bearish.
The token continues to trade under several major trend indicators. Staying below the three moving averages indicates that the long-term downtrend remains intact.
Technical momentum indicators point to a decline in selling pressure, but it has not yet reversed.
The Relative Strength Index is hovering near 44, indicating weak demand while remaining just above the oversold zone.
The Moving Average Convergence-Divergence (MACD) histogram remains in negative territory, indicating that bearish momentum remains in control despite the recent bounce.
If the bulls regain control, XRP could rise towards the 50-day EMA at $1.30, with additional hurdles at $1.40 and $1.61.
A break above $1.26 would be the first signal that bullish momentum is starting to strengthen.
However, if the downtrend continues, XRP may retest the $1.05 support level before falling below $1.0 to test lower demand areas at $0.95.
XRP’s recent recovery is supported by steady ETF inflows and growing institutional interest. However, lower futures activity, continued geopolitical uncertainty, and a bearish technical structure suggest that the recovery remains tentative.
