The cryptocurrency market has turned bearish again following a brief rally on Wednesday. Bitcoin is trading below $67K once again.
Meanwhile, Ripple’s XRP has failed to exhibit signs of recovery as it has retraced from the $1.41 resistance level again.
The risk-off sentiment remains a major concern across the broader cryptocurrency market, as retail and institutional interest decline.
Failure to move above the $1.41 key level could shape XRP’s short-term outlook in favour of the bears.
The technical indicators remain weak, with the odds rising for XRP to retest Friday’s low at $1.12.
Ripple announces a strategic partnership with Aviva Investors
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XRP is down 1% in the last 24 hours and now trades at $1.36 per coin.
The bearish performance comes despite Ripple announcing its strategic partnership with Aviva Investors.
The partnership seeks to bring real-world assets onto the XRP Ledger (XRPL) through tokenization.
The UK-based insurer and investment manager will explore the tokenization of funds on XRPL.
Furthermore, Ripple will also expand its presence in the United Kingdom and Europe.
While commenting on the partnership, Jill Barber, Chief Distribution Officer at Aviva Investors, stated that,
“We believe there are many benefits that tokenisation can bring to investors, including improvements in terms of both time and cost efficiency.”
XRP is also underperforming due to poor retail and institutional interest.
According to Coinglass, XRP’s futures Open Interest (OI) has declined to $2.26 billion on Friday, from the $2.31 billion recorded the previous day.
XRP’s OI has generally stayed in a downtrend since the record high of $10.94 billion in July, indicating that investors currently lack confidence in XRP’s ability to recover and sustain an uptrend.
Finally, institutional demand for XRP spot ETFs has weakened, with zero inflows on Thursday.
This left cumulative inflows at $1.23 billion and net assets under management at approximately $993 million.
XRP technical outlook: bears remain in control
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The XRP/USD 4-hour chart remains bearish as Ripple failed to overcome the $1.41 resistance level once again.
The momentum indicators suggest that XRP could undergo further selloff in the near term.
The Relative Strength Index (RSI) has declined to the 42 level and could approach the oversold region if the selloff persists.
Traders are also keeping an eye on the MACD lines, which remain diverged below the neutral zone, indicating a strong bearish momentum.
If the bearish trend persists, XRP could retest the October 10 low of $1.25.
However, if the daily candle closes above the $1.41 resistance, traders could anticipate a larger breakout toward Friday’s high of $1.54.
The next major resistance level at $1.78 could also limit further price action in the near term.
