The cryptocurrency market has slightly retraced following its recent rally.
Bitcoin has dropped to the $74,300 level, while Ether is trading around $2,330, down by more than 1% in the last 24 hours.
Ripple’s XRP is also down by 0.5% since Tuesday and is now hovering around $1.35 per coin.
It has failed to take out the $1.40 resistance level once again and could record further losses in the near term.
XRP ETFs, derivatives gain on renewed investor interest
XRP is down by less than 1% in the last 24 hours despite a mild return in risk appetite from both institutional and retail market participants.
According to CoinGlass, US-listed XRP spot Exchange-Traded Funds (ETFs) extended a three-day bullish streak, attracting $10.9 million in inflows on Tuesday and roughly $1.46 million on Monday.
Cumulative inflows now stand at $1.23 billion, with net assets under management averaging $966 million.
If the risk-on sentiment holds and draws investor interest, XRP could gain momentum, driving prices above $1.40.
In addition to that, XRP is currently experiencing a mild influx of retail capital, as futures OI rises to $2.47 billion on Wednesday, from $2.38 billion recorded on Monday.
A growing, liquid derivatives market could serve as a foundation for sustained price recovery.
However, XRP’s OI remains incredibly low from the $10.94 billion record numbers it achieved in July when its price hit the $3.66 all-time high.
The growth in derivatives demand underpins investor confidence and supports sustained price increases.
XRP struggles to break $1.40 resistance
The XRP/USD 4-hour chart remains bearish and efficient as Ripple has failed to break above the $1.40 resistance once again.
It is currently trading at $1.35, maintaining a bearish near-term bias as it holds beneath the major moving averages.
XRP remains capped first by the 50-day Exponential Moving Average (EMA) at $1.41, with the 100-day EMA at $1.56 and the longer-term 200-day EMA at $1.81 reinforcing a broader downside tone.
The Relative Strength Index (RSI) at 51 on the 4-hour chart is broadly neutral, suggesting a consolidation phase rather than a sharp downside move.
The Moving Average Convergence Divergence (MACD) is also modestly positive on the same chart, hinting that any recovery attempts could struggle while this overhead resistance remains intact.
If the bulls push harder, XRP could encounter immediate resistance at the 50-day EMA near $1.41.
A daily candle close above this level would ease current pressure and open the way toward the 100-day EMA around $1.56.
An extended rally would allow the bulls to target the $1.73 resistance, followed by the 200-day EMA near $1.81, which forms a broader supply zone that would need to be cleared to support a sustainable bullish reversal.
However, if the $1.40 resistance remains in play, XRP could retest the weekly low of $1.32 over the next few hours or days. The next major support stands at the $1.30 level.
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