- The XRP price remains below $2.00 amid increasing downside risks and declining retail investor demand:

The XRP price is still above the support level of $1.82 amid ongoing bearish signals and a 14% downside risk.
Demand in the retail sector is waning, as evidenced by the decrease in open interest in futures trading to $3.31 billion.
The failure of an $18 million inflow of XRP into U.S.-listed exchange-traded funds (ETFs) to spark a price rebound indicates a broader risk-avoidance trend.

Ripple (XRP) is trading between a key support level at $1.82 and a resistance level at $2.00 at the time of writing this report on Thursday, reflecting the overall stagnation in the cryptocurrency market.

Despite the cross-border token remaining above the immediate support level, which was also tested on November 21, the overall outlook remains bearish, as evidenced by declining retail investor interest.

XRP Price Declines Amid Reduced Retail Demand
XRP is experiencing a significant drop in retail investor interest, negatively impacting the derivatives market and leading to broader sell-offs. CoinGlass data shows that open interest in futures contracts reached $3.31 billion on Thursday, down from $3.52 billion the previous day and $3.71 billion on Tuesday.

Since the sudden crash on October 10, the derivatives market has been in noticeable stagnation, with open positions ranging between $3 billion and $4 billion. Before the debt reduction, open interest was at $8.36 billion, confirming decreased retail investor interest and demand.

Sustained support for rising prices requires continuous growth in open interest. Otherwise, recovery may remain an elusive dream as investors stay cautious.

Open Interest in XRP | Source: CoinGlass

On the other hand, institutional investors have shown immense interest in the token since the launch of the U.S. spot XRP ETFs, characterized by steady inflows.

XRP ETF funds recorded nearly $18 million in inflows on Wednesday, a significant increase from the $8.5 million recorded on Tuesday. The cumulative net inflows amounted to $1.03 billion, while the net asset value (NAV) stood at $1.14 billion, according to SoSoValue data.

Steady inflows into ETF funds support positive sentiment, potentially making XRP attractive not only to institutional investors but also to retail traders.

XRP ETF Trading Statistics | Source: SoSoValue