Ripple's XRP continues its downward trend, trading below $1.09 on Monday after a more than 10% drop last week. Institutional demand is weakening, as XRP spot Exchange-Traded Funds (ETFs) saw $529,510 in net outflows last week, ending a two-week streak of inflows. This shift in institutional sentiment could further pressure XRP's price, potentially pushing it toward a deeper correction.
Metrics for XRP are also deteriorating. CoinGlass’ long-to-short ratio for XRP stood at 0.91 on Monday, nearing its lowest level in over a month. A ratio below one indicates bearish sentiment, as traders anticipate further price declines. Additionally, CryptoQuant’s data shows large whale orders and sell-side dominance in both spot and futures markets, reinforcing a cautious, bearish outlook among traders.
Macroeconomic conditions are adding to the pressure on XRP. The stronger-than-expected US Nonfarm Payrolls (NFP) data released last week reinforced expectations of higher interest rates for longer. This increases the opportunity cost of holding non-yielding assets like XRP and reduces investor appetite for riskier investments. According to the CME FedWatch tool, traders are pricing in a 78.7% chance of a rate hike in December, up from 72.8% before the jobs report.
Technically, XRP is trading at $1.095 on Monday, maintaining a bearish near-term bias. The price remains well below key moving averages, with the Relative Strength Index (RSI) at 26, indicating oversold conditions. The Moving Average Convergence Divergence (MACD) histogram remains negative, reinforcing persistent selling pressure. On the downside, the psychological $1.000 mark is the nearest notable support, while resistance levels are seen at $1.160, $1.300, and higher.