Can XRP Surpass $1.50 as Buying Momentum Slows?

▲ Ripple (XRP)

XRP (Ripple) is attempting a short-term rebound while holding above the $1.40 support level, but with buying momentum from both retail and institutional investors cooling, the possibility of a trend reversal remains uncertain.

According to investment media outlet FXStreet on February 18 (local time), XRP was trading around $1.47 on Wednesday, recovering most of the previous day’s losses. Although the gains are modest, the defense of the $1.40 demand zone is supporting attempts to break above $1.50 in the near term and retest Sunday’s high of $1.67. However, analysts note that the overall slowdown in buying activity is limiting the potential for an upside breakout.

Clear signs of contraction are emerging in the derivatives market. Data from CoinGlass shows that XRP futures open interest fell to $2.45 billion from $2.53 billion the previous day. Compared to last July, when open interest surged to $10.94 billion as XRP hit an all-time high of $3.66, investor participation has declined significantly. A drop in open interest indicates ongoing position liquidations and limited new entries, reflecting risk-off sentiment.

Flows into spot exchange-traded funds (ETFs) have also slowed. According to SoSoValue, U.S.-listed spot XRP ETFs recorded neither inflows nor outflows on Tuesday, with cumulative inflows totaling $1.23 billion and net assets at $1.06 billion. Waning interest in related investment products suggests a broader weakening in risk appetite.

Technically, signals remain mixed. The Moving Average Convergence Divergence (MACD) indicator has maintained a buy signal since Saturday, while the Money Flow Index (MFI) has risen to 53, suggesting a gradual improvement in capital inflows. However, the 50-day Exponential Moving Average (EMA) at $1.71, the 100-day EMA at $1.92, and the 200-day EMA at $2.13 are all sloping downward, capping upside momentum. If XRP falls below $1.40, a retest of last Friday’s low at $1.35 remains possible.

Ultimately, a breakout above the psychological resistance at $1.50 and the sell-heavy zone at $1.54 is needed to pave the way for an extended rally toward $1.67. However, unless momentum returns from both retail and institutional investors, XRP is likely to remain range-bound with limited fluctuations for the time being.

Disclaimer: This article is for investment reference only and the publisher is not responsible for any investment losses incurred based on its content. The information should be interpreted for informational purposes only.