Institutional Retreat and Technical Warnings Flash Red for XRP

XRP faces mounting pressure as multiple indicators suggest an impending price correction. The cryptocurrency's 45% rebound from April lows to $2.31 appears fragile, with key metrics revealing weakening institutional support and concerning chart patterns. Notably, XRP remains 31% below its January 2025 peak of $3.40, raising questions about its recovery potential.

Futures Market Sentiment Turns Neutral

Derivatives data reveals troubling signs for XRP's near-term prospects. Funding rates have flatlined near 0% since February, indicating a lack of conviction among traders. More alarmingly, open interest has dropped 【9.6%】 from its May 13 peak to $3.2 billion. Historical patterns show assets with declining OI typically struggle to sustain rallies, making XRP vulnerable to sudden sell-offs.

——Market indifference often precedes sharp movements—— observes a derivatives analyst. Without fresh capital inflows, even modest selling could trigger cascading liquidations in leveraged positions.

Investment Products See Record Outflows

CoinShares data shows institutional investors rapidly exiting XRP positions. Weekly outflows hit 【$37.2 million】, ending an 80-week inflow streak. This contrasts sharply with Bitcoin and Ethereum products which attracted $2.9 billion and $326 million respectively. The divergence suggests professionals are reallocating funds away from XRP amid uncertain prospects.

Technical Breakdown Threatens $1.96 Target

XRP's four-hour chart shows a descending triangle pattern forming since mid-May, typically signaling bearish reversals. The cryptocurrency currently tests critical support at the 200-day moving average ($2.18). A confirmed breakdown could send prices tumbling 【16%】 to $1.96, with some analysts warning of potential declines toward $1.61 if key levels fail.

Interestingly, bulls need to push XRP above the triangle's resistance at $2.35 to invalidate the bearish setup. Such a breakout could reignite momentum toward $3.00, though current market conditions make this scenario appear less likely.

Market Crosscurrents Create Uncertainty

While network metrics had previously supported XRP's rally, the current combination of technical warnings and weakening institutional interest creates substantial headwinds. Retail traders appear caught between the cryptocurrency's recent rebound and these emerging risks, resulting in the observed market indecision.

As the situation develops, all eyes remain on whether XRP can hold critical support levels or if the bearish signals will materialize into another significant price decline. Market participants should prepare for potential volatility in either direction.