XRP defends the $1.3 support amid weak ETF flows and retail demand

The cryptocurrency market is having a breather following a poor start to the week.

Bitcoin, the leading cryptocurrency by market cap, tapped the $66k level, adding more than 3% to its value in the last 24 hours. 

XRP, the native coin of the Ripple ecosystem, is also up by 3%, defending the $1.3 support level on Tuesday. 

The performance comes amid heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.

Furthermore, investors in risk-based assets like Bitcoin and XRP remain on edge as the United States (US) trade partners brace for a fresh 10% 150-day temporary tariff.

The change in tariff policy came despite the Supreme Court striking down earlier duties imposed by President Donald Trump aimed at reducing the trade deficit.

Despite the relief, XRP is still trading under heavy pressure, with derivatives and institutional demand also weak. 

XRP defends the $1.3 level amid cooling ETF demand

XRP is up 3% in the last 24 hours and is now trading at $1.36 per coin.

The performance comes as the prevailing risk-off sentiment has seen investors remain on the sidelines.

This has affected activity in the XRP spot Exchange-Traded Funds (ETF) market.

SoSoValue reveals that RP ETFs have continued to face subdued activity, with no flows since Friday. 

Thanks to this latest development, the cumulative inflows average $1.23 billion, with net assets under management at $875 million.

Furthermore, the derivatives market is extending its weakness.

XRP’s futures Open Interest (OI) reads $2.24 billion on Wednesday, down from the $2.29 billion and $2.40 billion recorded on Tuesday and Monday, respectively.

The OI has persistently declined from the record $10.94 billion in July, undermining retail interest in the remittance token.

Technical outlook: Will XRP reclaim the weekly high of $1.42?

XRP is trading around the $1.36 region as its 4-hour chart remains extremely bearish.

The coin is trading below the 50-day Exponential Moving Average (EMA), 100- and 200-day EMAs, underscoring a dominant downward trend.

The momentum indicators remain bearish despite the temporary relief in the market.

The Moving Average Convergence Divergence (MACD) line remains below the signal line, limiting XRP’s recovery potential in the near term. 

The Relative Strength Index (RSI) near 46 signals weak momentum. However, it has not entered the oversold region yet.

But if the recovery continues, XRP could rally towards the nearest resistance level at $1.51, where prior rebounds stalled.

The next major resistance is the 50-day EMA around $1.64.

The support level at $1.30 held on Tuesday, giving room for this relief pump.

If the support level fails to hold, XRP could dip towards the $1.25 psychological level.

Sustained trading below this support level would keep sellers in control and maintain pressure toward lower daily lows.