 ▲ Ripple (XRP) |
XRP (Ripple) continues to struggle below $1.40, failing to escape its downward trend despite the issuer’s announcement of a large-scale funding model aimed at expanding its ecosystem, as retail investors turn away.
According to investment-focused outlet FXStreet on February 27 (local time), Ripple unveiled a new decentralized funding model that leverages diversified channels to extensively support ecosystem builders. Set to be introduced in 2026, the model will create an environment in which independent institutions, venture partners, regional hubs, and community-led initiatives closely back ecosystem developers. In particular, Ripple plans to fully launch new initiatives such as the “Fintech Builder Program” to support startups developing institutional-grade financial products—including stablecoin payments, credit infrastructure, and tokenization—based on the XRP Ledger (XRPL).
Despite these aggressive ecosystem expansion efforts, retail demand for XRP has been cooling significantly. Futures open interest, a key indicator in the derivatives market, declined from $2.35 billion the previous day to $2.3 billion as of Friday, shrinking to its lowest level since January 2025. This marks a stark contrast to the $10.94 billion recorded last July when XRP reached $3.66, suggesting that investors are exiting the market and avoiding risk rather than opening new positions.
Technical indicators also point to a short-term bearish bias for XRP. Currently trading near $1.38, XRP remains well below the 50-day, 100-day, and 200-day exponential moving averages (EMAs), which are densely clustered between $1.62 and $2.06. All three moving averages are trending downward, indicating that overall selling pressure remains firm despite a modest rebound from the recent weekly low of $1.31.
On the daily chart, the Relative Strength Index (RSI) is hovering around 40, staying below the neutral 50 level and reaffirming strong bearish momentum. Although the Moving Average Convergence Divergence (MACD) remains above the signal line, hinting at slight upward pressure, the contracting green histogram suggests that the rebound lacks strength.
Experts predict that even if XRP manages a short-term rebound, it is likely to face strong selling resistance around $1.54 and near $1.62, where the 50-day EMA is positioned. Conversely, if buying interest dries up completely, the token could be pushed back down to the key support level of $1.31, warranting heightened caution from investors.
Disclaimer: This article is for investment reference only and the publisher is not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.