Why XRP's rebound is stalled... Is it due to individual investor departure?

▲ Ripple (XRP) ©

XRP (Ripple) has managed to hold its key support level, but its rebound momentum is being limited by slowing demand from individual investors and a weak technical structure.

According to investment media FXStreet on April 28 (local time), XRP is currently forming short-term support near $1.41 amidst increasing selling pressure. Strong resistance exists between $1.53 and $1.78, limiting its upward potential.

The macroeconomic environment has shown some improvement. Expectations of easing tensions between the U.S. and Iran continue, showing signs of recovery in risk asset preference. While the cryptocurrency Fear & Greed Index rose from 33 to 47 the previous day, it still remains in the 'Fear' zone, indicating that investor sentiment has not fully recovered.

Institutional demand showed signs of a rebound. XRP digital investment products saw a net inflow of $25 million last week, bringing assets under management close to approximately $2.58 billion. This is a reversal from the $56.2 million outflow the previous week, but the market remains in a wait-and-see mode ahead of the Federal Open Market Committee (FOMC) results scheduled for April 28-29.

In contrast, individual investor participation remains limited. XRP futures open interest slightly increased to approximately $2.55 billion, but this is significantly lower compared to the $10.94 billion recorded last July. This indicates that the market lacks confidence in the continuation of an upward trend.

Technically, the 50-day exponential moving average (EMA) is acting as a key turning point. XRP is barely holding above the 50-day EMA near $1.42, but it remains below the downtrend breakout zone of $1.43, and the 100-day and 200-day EMAs at $1.53 and $1.78, respectively. The Relative Strength Index (RSI) is showing a downtrend near the 50-line, and the Moving Average Convergence Divergence (MACD) also indicates slowing upward momentum. Analysis suggests that a break below $1.42 could open up further downside potential to the $1.31 range.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*