Ripple's XRP Stabilizes Amid Mixed Signals as ETF Inflows Resume Despite Low Retail Activity

XRP is trading near $1.60 on Wednesday, showing slight stability after a brief sell-off earlier in the week. The token's price reflects weak but stable sentiment in the broader crypto market, which has seen mixed movements over the last several days.

The token's stabilization comes despite a continued decline in retail participation, with futures Open Interest dropping to $2.61 billion on Wednesday. This decline in OI indicates that traders are closing positions rather than opening new ones, reducing the buying pressure needed to sustain a recovery.

Meanwhile, inflows into US-listed XRP spot ETFs suggest renewed institutional interest. On Tuesday alone, ETFs saw inflows of $19 million, following mild outflows of $405,000 on Monday. The cumulative inflow now stands at $1.2 billion, signaling cautious optimism among institutional investors.

Why Did XRP Stabilize?

The stabilization of XRP may be attributed to both institutional inflows and a brief period of bearish exhaustion. The Relative Strength Index has moved slightly above the oversold threshold, hinting that bearish momentum is slowing.

However, the Moving Average Convergence Divergence (MACD) indicator remains below the signal line on the daily chart, suggesting continued bearish pressure. While the histogram bars have been contracting, they remain below the zero line, signaling that investors may be reducing risk exposure.

The token's price action is also influenced by key supply zones. If XRP breaks the $1.60 level, it may face renewed downward pressure, testing support levels at $1.53 and $1.50.

How Are ETF Inflows Affecting the Price?

ETF inflows have played a key role in maintaining short-term stability for XRP. On Tuesday, XRP ETFs attracted $19 million in inflows, following a recent outflow of $93 million on Thursday. This fluctuation in flows mirrors broader market sentiment and reflects the cautious stance of institutional investors.

The inflows could support a potential rebound above key resistance levels, such as $1.65 and $1.77. These levels have been tested previously, and a sustained move above them could signal a shift in market psychology. However, the current low retail participation and declining OI remain obstacles to a strong recovery.

What Are Analysts Watching Next?

Analysts are closely monitoring key technical indicators such as the RSI and MACD for signs of momentum shifts. The RSI has shown signs of recovery, but a continued move toward the midline would be necessary to confirm a more bullish outlook.

The 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) remain above the current price, maintaining a bearish trend structure. A sustained move above the 200-day EMA at $2.25 would be a critical technical milestone.

Retail participation is also a key variable. If Open Interest continues to decline, it could confirm a lack of retail confidence in XRP's recovery. On the other hand, a reversal in OI would be a strong bullish signal, indicating renewed trader participation.

Investors are also keeping an eye on the XRP Ledger (XRPL) for signs of increased on-chain activity. Active address counts have been fluctuating, suggesting that participation in the network remains uneven. A consistent rise in active addresses could indicate renewed usage or adoption, which would support a longer-term bullish narrative.