Ripple (XRP) is trading around $1.40 at the time of writing, despite new pressures arising from the tariff policy enveloping the cryptocurrency market. Previously, this token experienced a strong correction, dropping to $1.33 — the lowest of the day — reflecting the combined impact of macroeconomic instability, escalating geopolitical tensions, and a risk-averse sentiment dominating investors, among many other adverse factors.

Inflow into XRP slows as Bitcoin and Ethereum witness capital outflow.

According to the latest report from CoinShares, the inflow of funds into XRP-related investment products last week was only $3.5 million, plummeting by 90% compared to the $33 million of the previous week. Nevertheless, the total assets under management (AUM) of these products remain around $2.6 billion, while the cumulative capital flow since the beginning of the year (YTD) reached $151 million.

Cryptocurrency investment flow | Source: CoinShares

Conversely, financial products linked to Bitcoin continue to face weak demand as they recorded up to $215 million withdrawn last week. Despite a strong sell-off that saw the “king of cryptocurrencies” temporarily fall below $65,000, Bitcoin's total AUM remains impressively at $104 billion. However, the net capital outflow since the beginning of the year has reached about $1.3 billion.

CoinShares noted: “Bitcoin remains the dominant factor pulling market sentiment down, with $215 million withdrawn from investment products. In contrast, Bitcoin short-selling products attracted $5.5 million in inflow — the highest among digital assets.”

Ethereum is also not exempt from this negative trend, experiencing another week of net capital outflow, totaling $36.5 million. Since the beginning of the year, the amount of capital withdrawn from Ethereum-related products has reached $494 million, while total assets under management still exceed $15 billion.

Notably, in the retail investor segment, the XRP derivatives market shows stable signals. The open interest (OI) of XRP futures slightly increased to $2.4 billion on Tuesday, compared to $2.33 billion the previous day. Data from CoinGlass also confirms this trend, with OI maintaining above $2.32 billion since the adjustment back to $2.56 billion on February 16.

The steady increase in OI indicates that investors are willing to take on higher risks, reflecting improved confidence in XRP and thereby opening up expectations for the recovery potential of this token in upcoming trading sessions.

XRP futures OI data | Source: CoinGlass

Technical outlook: Assessing the recovery potential of XRP.

XRP is currently fluctuating around $1.40, receiving some support from the MACD indicator as the MACD line remains above the signal line on the daily timeframe. However, the continuous narrowing of the green histogram bars indicates that the bullish momentum of this payment token is weakening, making the likelihood of a strong breakout in the short term less favorable.

At the same time, the RSI index is retreating to a level of 39 — significantly lower than the neutral threshold — clearly reflecting the weakened state of the overall technical structure on the daily chart.

XRP/USDT daily chart | Source: TradingView

Notably, the exponential moving averages (EMA) are all pointing downwards, with the 50-day EMA at $1.66, the 100-day EMA at $1.87, and the 200-day EMA at $2.09. This development reinforces the scenario that XRP may enter a prolonged correction phase, with downside targets respectively aiming towards the daily low at $1.33 and the important support area established on October 10 around the $1.25 mark.

On the other hand, if market sentiment improves and the capital flow returns more strongly, XRP could record a technical rebound, pushing the price up to the supply area of $1.54 — a region coinciding with the low on February 6 at $1.12.

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