Ripple (XRP) gained momentum on Monday and traded above $1.15 with a broader correction in the crypto market. The improvement comes amid easing geopolitical tensions in the Middle East, following reports that the United States (US) and Iran have made progress in the first round of talks aimed at achieving a lasting peace deal.
Despite both countries agreeing to an initial framework targeting a final agreement within 60 days, Israel’s attacks on Lebanon could complicate the existing ceasefire.
Meanwhile, US President Donald Trump has warned Iran to “stop its highly paid proxies from causing trouble in Lebanon.” Trump said that “If they don’t do it, we will hit Iran very hard again, just like we did last week, even harder!!!”
XRP attracts steady institutional interest
Institutional investors looking to gain exposure to the cryptocurrency through spot exchange-traded funds (ETFs) have steadily increased their allocation to XRP in recent weeks. According to SoSoValue, the XRP ETF has now recorded net inflows for seven consecutive weeks.
Inflows last week were $11 million. Cumulative inflows are $1.45 billion, while net assets under management average $995 million.
Although inflows have been moderate, persistent demand for US-listed XRP spot ETFs suggests that institutional investors maintain a constructive view on XRP’s near- to mid-term recovery potential.
“The focus is on regulation, payments adoption, and broader altcoin sentiment. The Federal Reserve (Fed) is signaling higher interest rates for a longer period of time, which has a big impact on investor confidence,” said Anil Onku, CEO of BitPay.
The expanded scope of the XRP derivatives market paints a grim picture, given that futures open interest (OI) fell to $2.55 billion on Monday, down from $2.63 billion the previous day. The weak open interest is lower than the record $10.94 billion reached in July and weakens risk-on sentiment. Market participants are hesitant to initiate new long positions.
Onku says investors are finding it difficult to confidently value risk assets as “liquidity remains tight, and uncertainty remains about the future path of interest rates.”
Price Analysis: XRP gains momentum as bulls tighten grip
XRP continues to hold a strong position above the recently achieved $1.15 support, indicating strong buying activity among investors. Nevertheless, continued bearish momentum remains, with the spot price trading well below the key moving averages. The nearest Dynamic Cap aligns with the 50-day exponential moving average (EMA) around $1.25, while the additional overhead layer sits near the 100-day EMA at $1.35 and the longer-term 200-day EMA at $1.57.
A falling trendline resistance, projected from previous highs and intersecting beyond $1.50, reinforces the broader downside bias, even as the moving average convergence divergence (MACD) histogram remains mildly positive on the daily charts. At the same time, the Relative Strength Index (RSI) improves into the mid-40s on the same chart, hinting more at consolidation than a decisive bullish reversal.
At the top, bulls will first need to challenge the 50-day EMA at $1.25, with a daily close above that level opening the way to the 100-day EMA at $1.35 and then the downtrend resistance zone around $1.50. A sustained break of that trendline would be needed to expose the more distant 200-day EMA at $1.57 and shift the broader structure into a more constructive phase. Until then, rallies will be considered corrective within the current bearish framework.
(The technical analysis for this story was written with the help of AI tools.)
