Ripple (XRP) is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions after a turbulent week in the broader crypto market. The remittance token is up 21% from its intraday low of $1.12.
Light ETF flows support XRP recovery
Institutional investors continued to accumulate XRP spot exchange-traded funds (ETFs) with inflows of $1.28 million on Thursday despite ongoing price volatility.
The US-listed XRP ETF recorded net inflows for three consecutive days, following nearly $19.5 million on Tuesday and $4.8 million on Wednesday, according to SoSoValue data.
Cumulative inflows are $1.21 billion, and net assets under management are approximately $888 million. Sustained ETF flows generally reflect positive investor sentiment and can often correlate with bullish momentum in the underlying asset.
Meanwhile, weakness in the XRP derivatives market has increased, with futures open interest (OI) falling to $2.40 billion on Friday, the lowest level since early January 2025, from $2.61 billion on Thursday.
OI tracks the notional value of outstanding futures contracts, which estimates retail interest. Continued declines reflect low confidence in the asset’s ability to maintain steady price growth.
XRP’s ongoing recovery lacks support from the retail market, while institutional interest remains low. Therefore, traders should keep a close eye on OI trends to maintain an optimistic stance amid the volatility.
Meanwhile, given the ongoing price correction, the pressure from the liquidation position has eased. According to Coinglass, about $10 million were disposed of in longs and $10.5 million in shorts on Friday, while $59 million in longs and $11 million in shorts were disposed of on Thursday. As the XRP price rises, the pressure on long positions is poised to ease, potentially supporting a recovery.
Technical Outlook: XRP gains ground as bulls return
एक्सआरपी ने अपना मूल्य व्यवहार $1.36 से ऊपर बढ़ा दिया है, लेकिन 50-दिवसीय एक्सपोनेंशियल मूविंग एवरेज (ईएमए) से नीचे $1.88 पर, 100-दिवसीय ईएमए $2.05 पर और 200-दिवसीय ईएमए $2.22 पर बना हुआ है। All three moving averages are sloping downwards, strengthening the overall bearish structure, while the falling trend line from $3.66 moves closer to resistance at $2.18.
The moving average convergence divergence (MACD) is in negative territory on the daily chart, with its line below the signal line and a contracting negative histogram suggesting that the bearish momentum is gradually diminishing. Meanwhile, the Relative Strength Index (RSI) at 29 on the same chart is still oversold despite intraday gains. Any bounce in the RSI could lead to supply facing resistance against nearby dynamic resistances.
A close above the $1.40 range could accelerate the uptrend beyond the next hurdle at $1.50. However, the overall downtrend, as indicated by the moving averages, could lead XRP to retest its intraday low of $1.12.
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.)
