Ripple (XRP) appears to have found support at $1.38 on Friday following a significant correction from the weekly high of $1.47 tagged on Wednesday. The remittance token shows a subtle rebound signal, aiming for a short-term breakout above the $1.40 supply range.
XRP is being affected due to lack of market interest
Institutional demand for the XRP spot ETF halted on Thursday, as SoSoValue reported zero inflows. This marks a pause after three consecutive days of strong inflows: $3.87 million on Monday, $11.28 million on Tuesday, and $13.03 million on Wednesday.
Despite the softening of demand, cumulative inflows averaged $1.32 billion, up from $1.29 billion on Monday. Total assets under management are $1.08 billion, up slightly from $1.07 billion in the same period.
Demand for XRP derivatives fell to $2.59 billion on Friday, from $2.61 billion the previous day. Despite
Meanwhile, as liquidity accumulates around the $1.40 supply zone, increased volatility could challenge bulls’ short-term objective.
Technical Outlook: XRP tests rebound strength despite limited gains
XRP is trading at $1.39, maintaining a near-term bearish trend as the price remains confined to the bottom of the pack of key moving averages. The 50-day exponential moving average (EMA) at $1.41 is the first hurdle, with the longer-term 100-day and 200-day EMAs at $1.50 and $1.72 reinforcing a broader downside bias.
A downtrend resistance line, whose break level aligns at $1.45, further limits bullish ambitions. Furthermore, the Relative Strength Index (RSI) is near 49 on the daily chart, while the slightly negative Moving Average Convergence Divergence (MACD) histogram indicates weak momentum rather than an imminent upside breakout.
On the downside, early demand is being seen at the Supertrend line, which is now providing support around $1.32 and marking the first level where dip buyers may attempt to stabilize the market.
At the top, a sustained close above the 50-day EMA at $1.41 would be the first sign of bearish pressure easing, exposing descending trendline resistance near $1.45. Further upside will bring the 100-day EMA into focus at $1.50, ahead of the more distant 200-day EMA at $1.72.
(The technical analysis for this story was written with the help of AI tools.)
Crypto ETF FAQ
An exchange-traded fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can track not just a single asset, but also groups of assets and sectors. For example, a Bitcoin ETF tracks the price of Bitcoin. An ETF is a tool that investors use to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities and Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still awaiting regulatory permission. The SEC says the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the past few years.
Yes. The SEC approved the listing and trading of several Bitcoin spot exchange-traded funds in January 2024, opening the door for institutional capital and mainstream investors to trade the main cryptocurrency. The industry described this decision as a game changer.
The main advantage of crypto ETFs is the possibility of exposure to cryptocurrencies without ownership, thereby reducing the risk and cost of holding assets. Other advantages are a lower learning curve for investors and higher security as ETFs take charge of securitizing the underlying asset holdings. As far as the main drawbacks go, the main drawback is that as an investor you cannot have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are the high costs associated with holding crypto because ETFs charge fees for active management. Finally, even though investing in an ETF reduces the risk of holding the asset, price fluctuations in the underlying cryptocurrency are likely to be reflected in the investment vehicle as well.
