The cryptocurrency market is consolidating following its poor performance this week. Bitcoin is trading above $89k, while Ether has failed to recover above $3k.
Meanwhile, XRP, the fifth-largest cryptocurrency by market cap, is consolidating above $1.90, a short-term support level.
It risks dropping below this level despite ETF inflow into the ecosystem.
XRP stays below $2 despite fresh accumulation from whales
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XRP, the native coin of the Ripple ecosystem, is down 2.6% in the last 24 hours and is currently trading at $1.90 per coin.
The bearish performance comes despite XRP’s Long-Term Holder Net Unrealized Profit/Loss (LTH-NUPL) indicator resetting to levels historically associated with accumulation phases and local price floors.
According to Glassnode, the LTH-NUPL ratio indicates a transition to optimism at 0.39. If this metric continues to improve, investors would regain interest in XRP as accumulation pushes its price higher.
LTH-NUPL serves as an indicator of long-term investor behaviour as it tracks transactions with a lifespan of at least 155 days.
In addition to that, institutional investors are increasing their exposure to XRP.
According to CoinGlass, XRP ETFs recorded approximately $1.07 million in inflows on Thursday, led by Franklin Templeton’s XRPZ. The cumulative total inflow currently stands at $1.23 billion, and the net assets at $1.39 billion.
However, retail interest in XRP remains largely poor despite institutional investors increasing their exposure to the cryptocurrency.
XRP’s Open Interest averaged $3.38 billion on Thursday, up slightly from $3.35 the previous day.
The OI has declined from $4.55 billion recorded on January 6, indicating that retail traders have reduced their exposure to the market.
The low OI could negatively affect XRP’s price in the near term.
Will XRP defend the $1.90 level?
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The XRP/USD 4-hour chart is bearish as XRP has given up its gains from earlier this year.
The technical indicators remain bearish, suggesting that sellers remain in control.
At press time, XRP is trading at $1.906. The Moving Average Convergence Divergence (MACD) indicator remains below the signal line on the 4-hour chart, confirming XRP’s short-term bearish momentum.
The RSI of 41 is also below the neutral 50, adding further bearish confluence to XRP.
The $1.90 support level remains critical for XRP, as losing it could see the coin drop toward Monday’s low of $1.85.
However, if the bulls maintain XRP’s price above $1.90, it could sustain a bullish momentum and reclaim the $2.00 psychological threshold.
Beyond this level, the 50-day Exponential Moving Average (EMA) at $2.05, the 100-day EMA at $2.18, and the 200-day EMA at $2.30 could serve as potential resistance levels in the near to medium term.
Currently, the market conditions remain choppy, which could see its price swing between resistance and support levels.
