XRP Price Drops 4% as Downside Risk to $1.25 Soars Following Low Retail Demand

Highlights:

• The XRP price is down by 4% today, to trade at $1.32. 
• The open interest has dropped by 4%, showing a slip in retail demand. 
• The technical picture shows XRP could drop to the $1.25 zone, as the bearish grip mounts. 

XRP price is heading in the downward direction, currently trading around $1.32, marking a 4% drop today. These weaker movements come following the decrease in the weekly opening of $1.39, as the wider cryptocurrency industry wobbles. This is reinforced by uncertainty arising due to tariff fears.

Investors in risk assets are also on the rise as the United States trade partners prepare another 150-day temporary tariff on Tuesday. This might also increase the tariff on 15%. The tariff policy shift follows the declaration of President Donald Trump’s duties by the Supreme Court as unconstitutional to narrow the trade deficit. Meanwhile, the XRP remains pressured by poor technical performance, risk-off, and poor institutional performance in the wider institutional market.

The current risk-off mood has seen the investors stand on the periphery line. As SoSoValue data shows, the XRP ETFs have remained active at a low level since Friday. The cumulative inflows are on average of $1.23 billion, with the net assets under management of $875 million.

Meanwhile, the derivatives market is further weakening with futures Open Interest at $2.29 billion on Tuesday. The volume is also down 3.26% to $4.88 billion, indicating that the traders’ confidence has decreased. With the negative sentiment growing in the XRP market, the price could drop towards $1.25 lows. 

XRP Price Risks Further Downside to $1.25

The XRP/USD 4-hour chart shows the altcoin trading inside a falling channel. The downward pressure has pushed the token below both the 50-day SMA at $1.42 and the 200-day SMA at $1.56, indicating a prevailing bearish grip. Looking at technicals, the RSI is at 32.34, below the signal line at 37.25. This shows that the bears are dominating the market, with potential to move towards the oversold region.

Looking at the bigger picture, if the bears keep pushing, the XRP price might test the $1.28-$1.25 zones. If these support floors break, the next stop could be the $1.11 lows. Conversely, if the bulls step up and ignite a buy-back strategy, the immediate barrier around the $1.42 mark may be tested. A breach above this zone will open the doors for further upside, obliterating the bearish sentiment. In such a case, the next target may be around the $1.47-$1.56 area.

The 200-day SMA at $1.56 and the 50-day SMA at $1.42 are like the major zones to watch for the bulls. Moreover, XRP has to pick a direction, in that it either pumps past $1.42 and aims for $1.56. Notably, the altcoin may dip below current levels towards $1.25. In the short term, the price might keep sliding to $1.25 if the bearish trend holds. Moreover, the negative market outlook reinforces further downside, as the overall market is bearish.