November has been an extremely bearish month for the cryptocurrency market so far, and the trend could be set to continue for a while. Bitcoin, the leading cryptocurrency by market cap, dropped below the $90k psychological level a few hours ago, with major altcoins such as Ether and XRP also recording losses. XRP has been extremely bearish since hitting its recent high of $3.66 on July 18. The cross-border remittance coin could face further declines in the near term amid increasing institutional outflow. XRP struggles as institutional outflow increases XRP, the native coin of the Ripple ecosystem, is down 4% in the last 24 hours and is now trading at $2.17 per coin. The bearish performance comes as XRP-related digital asset products saw outflows of $15.5 million last week amid bearish sentiment across the crypto market. CoinShares, in its latest report , highlighted that the current monetary policy uncertainty was the primary driver of the outflows. The report added that Bitcoin (BTC) and Ethereum (ETH) led the losses with outflows of $1.38 billion and $689 million, while investors shifted toward multi-asset Exchange Traded Funds (ETPs). Furthermore, retail demand for XRP remains relatively low since the October 10 deleveraging event. According to CoinGlass , XRP’s futures Open Interest (OI) averaged $3.61 billion on Monday, a minor pullback from $3.63 billion the previous day. However, it remains considerably low compared to the record highs of $10.94 billion posted on July 22. The decline in XRP futures OI shows a weak derivatives market with low retail interest. Currently, traders are not convinced that the current market conditions will end and usher in a bullish trend. XRP could dip below $2 as volatility spikes The XRP/USD 4-hour chart remains bearish and inefficient as XRP has underperformed in recent weeks. The cryptocurrency broke below the $2.2 support level on Monday, indicating strong selling pressure in the market. The Relative Strength Index (RSI) has dropped to 39, indicating that sellers have the upper hand in the short term. Furthermore, the sell signal from the Moving Average Convergence Divergence (MACD) indicator on the 4-hour chart encourages investors to reduce their exposure to the market, increasing the selling pressure. If the bearish trend continues, XRP could drop below the $2.0 psychological level as the Death Cross pattern forms on the 4-hour chart. A Death Cross is a bearish pattern that reinforces risk-off sentiment. The support level at $1.90 could provide temporary strength for XRP. However, if XRP recovers from the ongoing selloff, it could recover key positions, including the 50-day Exponential Moving Average (EMA) at $2.49, the 200-day EMA at $2.56, and the 100-day EMA at $2.60, over the next few days. The post XRP dips below $2.2 amid extreme fear and institutional outflow appeared first on Invezz
