Ripple (XRP) rose above $2.13 at the time of writing on Monday, reflecting steady interest in risk assets in the cryptocurrency market despite geopolitical tensions.
XRP is rising for the fifth consecutive day, supported by continued inflows into spot exchange traded funds (ETFs). Retail interest in cross-border remittance tokens is slowly showing signs of returning, as evidenced by futures open interest (OI) rising to $3.8 billion.
Key milestones remain important for the continuation of the uptrend, including a breakout above a multi-month trendline on the daily chart. On the other hand, amid rising volatility, XRP could see another decline with a daily closing price below the crucial $2.00 level.
XRP remains stable amid institutional and retail growth
XRP spot ETFs listed in the United States (US) saw inflows of $43 million last week. Since its launch in November, the XRP ETF has maintained consistent weekly inflows, indicating growing interest from institutional investors.
SoSoValue data shows that five ETF products recorded inflows of about $13.6 million on Friday, bringing cumulative net inflows to $1.18 billion and net assets to $1.37 billion.
Meanwhile, XRP derivatives consumption continues to slowly improve, as futures OI increased to nearly $3.8 billion on Monday, up from $3.6 billion the previous day. OI averaged $3.3 billion on Thursday, indicating retail demand is making a comeback and could continue to support price gains.
Technical Outlook: XRP holds support ahead of potential breakout
At the time of writing on Monday, XRP is trading at $2.13. The 50-day exponential moving average (EMA) provides support at $2.05, which suggests that bulls have a slight edge over bears.
The Moving Average Convergence Divergence (MACD) indicator maintains a positive outlook on the daily charts, with green histogram bars extending above the average line. Furthermore, the blue MACD line sits above the red signal line, suggesting strengthening bullish momentum.
Similarly, the Relative Strength Index (RSI) at 65 and rising supports the bullish thesis for XRP. A further rise of the RSI into the overbought zone would increase the likelihood of a breakout above the moving average cluster, represented by the 100-day EMA at $2.22 and the 200-day EMA at $2.34.
A falling trend line from the record high at $3.66 limits gains, with resistance seen near $2.41. A daily close above the 100-day EMA would open the door towards the 200-day EMA barrier, solidifying a recovery phase, while the 50-day EMA would underpin a pullback to keep the bounce intact.
Failure to clear the trend line and 100-day EMA cap will weigh on the broader bias and risk a return to consolidation or an extended decline below the $2.00 level.
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.
(The technical analysis for this story was written with the help of AI tools)
