XRP sell-off intensifies as bears close in on the crucial $1 level

XRP continued to trade with a bearish bias on Tuesday, extending its correction for a fourth straight session as weak investor demand and cautious market sentiment weighed on the cryptocurrency.

Although XRP has attracted modest institutional inflows, analysts say stronger buying pressure will be needed to prevent a deeper decline and support a sustained recovery.

XRP ETFs record zero inflow amid weak market sentiment

Investor sentiment toward XRP remains fragile despite a slight improvement in the broader cryptocurrency market.

The Crypto Fear & Greed Index remained in Fear territory with a reading of 28, up from 26 the previous day and 24 last week, indicating that investors are still approaching the market cautiously.

On the institutional side, spot XRP exchange-traded funds (ETFs) posted no inflow on Monday after a modest $107,000 inflow on Friday.

Despite the recent slowdown, cumulative net inflows into XRP ETFs have climbed to $1.48 billion, highlighting continued long-term institutional interest. 

However, analysts note that stronger and more consistent inflows will be required to reinforce XRP's recovery.

Retail participation also remains subdued. Data from CoinGlass shows that XRP perpetual futures open interest (OI) increased slightly to $2.31 billion on Tuesday compared with $2.10 billion a day earlier.

Without sustained increases in trading activity, XRP could remain vulnerable to additional downside pressure.

Ripple CEO Brad Garlinghouse disclosed that the company seriously considered shutting down after the U.S. Securities and Exchange Commission (SEC) filed its lawsuit against Ripple in 2020.

Speaking at the University of Kansas School of Business, Garlinghouse said he and Ripple co-founder Chris Larsen discussed dissolving the company and distributing XRP holdings to shareholders rather than engaging in a lengthy legal battle with the regulator.

He admitted that ending the company may have appeared to be the easier option at the time, given the SEC's extensive legal resources.

Ultimately, Ripple chose to fight the case in court—a decision that later proved pivotal after Judge Analisa Torres ruled that XRP itself is not a security. 

Ripple and the SEC officially settled the lawsuit in May 2025, bringing one of the crypto industry's most closely watched legal disputes to an end.

XRP technical analysis: Bears remain in control

The XRP/USD 4-hour chart remains bearish as XRP continues to trade within a descending channel, reinforcing the prevailing bearish trend.

The token remains below the 50-day EMA at $1.16, the 100-day EMA ($1.26), and the 200-day EMA ($1.47).

As long as XRP trades below these resistance levels, rallies are likely to be viewed as temporary recoveries rather than the start of a new uptrend.

The Relative Strength Index (RSI) remains around 39, indicating weak momentum and suggesting sellers continue to dominate the market.

If the rally resumes, immediate resistance sits near $1.12, followed by the 50-day EMA at $1.16 and the 100-day EMA around $1.26. 

A sustained move above these levels could improve the short-term outlook.

On the downside, initial support lies around $1.04. If that level fails, XRP could slide toward the lower boundary of its bearish channel near $0.78, where buyers may attempt to establish support.