XRP extended its pullback for a fourth straight session on Tuesday, trading with a bearish bias as weak demand and cautious sentiment continued to weigh on the cryptocurrency. The day’s developments included a pause in spot XRP ETF buying and subdued retail activity, while Ripple CEO Brad Garlinghouse also reiterated how close the company came to shutting down after the SEC lawsuit began in 2020.
Key takeaways
- Price move: XRP remained in a bearish recovery attempt, trading below key moving-average resistance levels.
- Catalyst: Spot XRP ETFs recorded no inflow on Monday, while the Crypto Fear & Greed Index stayed in Fear territory.
- Investor implication: Without stronger and more consistent buying—especially from ETFs and spot markets—XRP faces risk of deeper downside.
- Technical level to watch: Traders will focus on the $1.04 support area and the $0.78 lower boundary of the prevailing bearish channel.
ETFs show no fresh bid as sentiment remains fragile
Investor sentiment toward XRP stayed cautious even as parts of the broader crypto market showed slight improvement. The Crypto Fear & Greed Index remained in Fear territory at 28, up from 26 the prior day and 24 a week earlier, suggesting investors continued to approach risk in a guarded manner.
On the institutional front, spot XRP exchange-traded funds (ETFs) posted no inflow on Monday. That followed a modest $107,000 inflow on Friday. While cumulative net inflows into XRP ETFs have risen to $1.48 billion, analysts said the recent slowdown in daily activity could limit the ETF complex’s ability to firm up prices during a correction.
Retail participation also appeared muted. Data from CoinGlass showed XRP perpetual futures open interest (OI) edged up to $2.31 billion on Tuesday from $2.10 billion a day earlier. Still, the incremental change suggested that traders were not accelerating into the asset with strong conviction—leaving XRP exposed to further selling pressure if demand does not return.
Ripple leadership revisits the stakes of the SEC case
Beyond market flows, Ripple’s legal backdrop added another layer to the day’s narrative. Ripple CEO Brad Garlinghouse said the company seriously considered shutting down after the US Securities and Exchange Commission (SEC) filed its lawsuit against Ripple in 2020. He added that he and co-founder Chris Larsen discussed dissolving the company and distributing XRP holdings to shareholders instead of pursuing a prolonged legal battle.
Garlinghouse acknowledged that ending the firm might have appeared to be the easier path at the time, given the SEC’s extensive resources. Ripple ultimately chose to continue the case, a decision that later proved pivotal after Judge Analisa Torres ruled that XRP itself is not a security.
Ripple and the SEC later settled the dispute in May 2025, bringing one of the crypto industry’s most closely watched legal proceedings to an end. While that settlement removed a key overhang, investors remain focused on whether current demand can translate into sustained price support.
Technical outlook: bearish channel and moving-average ceilings
On the charts, XRP/USD remained bearish on a four-hour basis, continuing to trade within a descending channel. The token was still below three key resistance benchmarks: the 50-day exponential moving average (EMA) at $1.16, the 100-day EMA at $1.26, and the 200-day EMA at $1.47.
Market interpretation has stayed consistent with the recent downtrend: as long as XRP holds below these levels, rallies are more likely to be treated as corrective bounces rather than the start of a sustained recovery. Momentum indicators also aligned with the negative bias. The Relative Strength Index (RSI) hovered around 39, pointing to weak momentum and ongoing seller control.
If buyers attempt to push higher, the first area of resistance is near $1.12, followed by the 50-day EMA at $1.16 and the 100-day EMA around $1.26. A move above these thresholds would be required to improve the near-term technical picture.
Downside levels drew attention as well. Initial support sits around $1.04. If that fails, traders flagged the lower boundary of the bearish channel near $0.78, where buyers may try to defend against a deeper breakdown.
What to watch next
With XRP still trading below major moving-average resistance and ETF inflows stalling on Monday, near-term price action is likely to remain highly sensitive to renewed buying signals. Investors will be watching for fresh spot ETF demand, changes in futures open interest that suggest stronger participation, and whether XRP can hold $1.04. Broader crypto market drivers could also influence risk appetite, while upcoming regulatory and macro catalysts—along with continued technical confirmation above resistance—will be key to determining whether the correction can end.
