XRP consolidates near resistance as ETF inflows sustain bullish sentiment
|- XRP trades near $2.10 as bulls aim for a breakout above the 50-day EMA.
- XRP spot ETFs extend inflow streak for 15 consecutive days, signaling steady institutional demand.
- Retail demand remains weak, with futures Open Interest averaging $3.63 billion.
Ripple (XRP) is trading at around $2,10 at the time of writing on Monday, after bouncing off its short-term support at $2.00. The cross-border remittance token has continued to receive steady support from institutional investors through spot Exchange Traded Funds (ETFs) listed in the United States (US), although this has failed to materialize into a substantial price increase for the token.
Traders should remain cautious considering XRP showcases a weak derivatives market.
XRP ETFs extend inflow streak
Demand for XRP spot ETFs has remained steady since their debut on November 13. SoSoValue data shows that US-listed XRP ETFs posted approximately $10 million in inflows on Friday. This extended the inflow streak to 15 days, bringing the cumulative inflow volume to $897 million and net assets to $861 million.
Steady ETF inflows increase buying pressure, bolstering the case for XRP and supporting a bullish outlook.
Four XRP ETFs operate in the US, including Canary Capital’s XRPC, Grayscale’s GXRP, Bitwise’s XRP and Franklin Templeton’s XRPZ.
Meanwhile, retail demand has remained significantly suppressed for almost two months. CoinGlass data shows that XRP futures Open Interest (OI) stands at $3.63 billion on Thursday, up slightly from $3.59 billion on Sunday.
Despite the minor increase in OI, which represents the notional value of outstanding futures contracts, the derivatives market is lagging those levels seen before the October 10 deleveraging event (OI of $8.36 billion) and its record high of July 22 ($10.94 billion).
This massive decline underscores the low retail interest. Investors are staying on the sidelines, not convinced that XRP can sustain an uptrend in the short term.
Technical outlook: XRP consolidating gains
XRP is trading at $2.09, with the price sitting below the falling 50-day Exponential Moving Average (EMA) at $2.27. The 100-day EMA at $2.43 and 200-day EMA at $2.47 also slope lower, maintaining a bearish bias and capping rebounds.
The Relative Strength Index's recent uptick on the daily chart suggests fading downside pressure, but the indicator remains at 45 (neutral-bearish). The descending trend line from XRP's record high of $3.66 also limits gains, with resistance at $2.60. The Parabolic SAR has flipped below price, placing a trailing support near $1.90, though bears retain control while the pair trades under the moving averages.
A close above the 50-EMA at $2.27 could open the path toward the descending trendline barrier at $2.60. The rising trend line (green) from $1.62 underpins the medium-term bias, offering support on dips. Holding the $1.90–$1.83 support band would allow a base to form a recovery, while a break below it would sustain the broader downtrend toward April's low of $1.61.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
(The technical analysis of this story was written with the help of an AI tool)
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