Ripple extends sideways action amid low on-chain activity, ETF outflows

Ripple ($XRP) hovers around $1.34 at the time of writing on Friday, as market participants turn their attention to ceasefire talks between the United States (US) and Iran in Pakistan over the weekend.

Despite the fragile ceasefire brokered earlier this week, market sentiment has remained significantly suppressed, as reflected in the crypto Fear & Greed Index, which stands at 16 on Thursday, in extreme fear territory. The deteriorating sentiment suggests that investors lack confidence in the crypto markets ability to sustain recovery, which could explain the $XRP price rejection at $1.40 on Tuesday.

Crypto Fear & Greed Index | Source: Alternative$XRP on-chain activity subdued as ETFs turn bearish

The number of addresses actively transacting on the $XRP Ledger (XRPL) by sending or receiving assets has declined to near 16,000 as of Thursday, from roughly 18,000 the previous day.

CryptoQuant data shows that active addresses surged to nearly 32,000 on Sunday, underscoring growing user engagement that preceded the upswing to $1.40 on Tuesday. If on-chain activity does not improve, $XRP could remain constrained within a range, with support at $1.30 and resistance at $1.40.

$XRP Active Addresses | Source: CyptoQuant

$XRP spot Exchange-Traded Funds (ETFs) remain on the back foot, as risk appetite appears to deteriorate further. Despite Bitcoin and Ethereum ETFs posting inflows on Thursday, US-listed $XRP ETFs experienced outflows of roughly $661,000. Cumulative inflows currently stand at $1.21 billion, with net assets under management averaging $955 million.

$XRP ETF flows | Source: SoSoValueTechnical outlook: $XRP holds steady amid range consolidation

$XRP trades at $1.34, maintaining a bearish near-term bias as price holds decisively beneath major moving averages. The 50-day Exponential Moving Average (EMA) at $1.42, the 100-period EMA at $1.57, and the 200-period EMA at $1.83 all sit overhead, suggesting the broader trend remains capped despite a mildly positive Moving Average Convergence Divergence (MACD) reading on the daily chart and a Relative Strength Index (RSI) hovering around a neutral 45. Together, these indicators suggest consolidation rather than a sustained recovery.

$XRP/USDT daily chart

On the topside, $XRP's initial resistance is at $1.40, where any rebound is likely to run into early supply. A break above this hurdle would expose the 50-day EMA near $1.42, followed by the 100-day EMA at $1.57. On the downside, the lack of clearly defined indicator-based support on the chart leaves $XRP vulnerable to further downside, with traders likely to look to recent swing lows at $1.30 a for potential basing signs rather than relying on established technical floors.

(The technical analysis of this story was written with the help of an AI tool.)