XRP exhibits bullish outlook amid steady ETF inflows
|- XRP extends gains for the second consecutive day, trading above $1.43 on Tuesday as bulls tighten their grip.
- XRP’s on-chain metrics show modest improvement, with the number of active addresses climbing to near 18,000 and Binance exchange reserves declining to 2.76 billion tokens.
- US-listed spot ETFs extended their bullish streak with $3 million in inflows on Monday.
Ripple (XRP) shows signs of extending gains while trading above $1.43 at the time of writing on Tuesday. Several key support levels uphold the neutral-to-bullish bias, including the demand zone between $1.40 and $1.42.
On the upside, bulls need to flip the supply area at $1.45 into support to extend the uptrend by 7% and reach the short-term objective at $1.54.
On-chain activity bolsters XRP’s recovery outlook
XRP active addresses show a marginal improvement, rising above 17,600 on Monday, up from roughly 15,000 the previous day. Historically, sustained growth in the Active Addresses metric points to increased user participation, demand for XRP and a strengthening fundamental outlook. As observed in the chart below, the price often rises alongside steady growth in active addresses.
XRP Binance exchange reserves, on the other hand, appear to be edging lower, averaging 2.76 billion tokens as of Monday, from roughly 2.77 billion tokens the previous day.
As sentiment improves in the broader crypto market, investors gain confidence to hold onto their XRP assets by transferring them from exchanges to self-custody platforms. Notably, reduced supply on exchanges suggests fading selling pressure, which can positively impact the price.
Meanwhile, institutional interest in related investment products has remained steady, as evidenced by XRP spot Exchange-Traded Funds (ETFs) attracting $3 million in inflows on Monday. This marked the seventh consecutive day of inflows since April 10, according to SoSoValue data.
Cumulative inflows stand at $1.28 billion, with net assets under management averaging $1.08 billion. Steady risk appetite among institutional investors supports risk-on sentiment, increasing the likelihood of a sustained price recovery.
Technical outlook: XRP holds key support as bulls tighten their grip
XRP trades near $1.44, sitting above the 50-day Exponential Moving Average (EMA) at $1.41 and the 23.6% Fibonacci retracement at $1.42, applied between the January 6 high of $2.42 and the February low of $1.12, which together offer nearby downside support. Still, the remittance token remains well below the 100-day EMA at $1.54 and higher Fibonacci retracement levels.
The Relative Strength Index (RSI) is near 57 on the daily chart, and a positive Moving Average Convergence Divergence (MACD) histogram suggests moderate, yet constructive, bullish momentum.
On the topside, initial resistance lies at the 100-day EMA around $1.54, ahead of a more substantial cap formed by the 38.2% Fibonacci retracement at $1.61 and the 50.0% Fibonacci retracement at $1.76. The 200-day EMA near $1.79 and the 61.8% Fibonacci retracement at $1.92 define a broader medium-term supply zone.
On the downside, immediate support is provided by the 23.6% Fibonacci retracement at $1.42 and the 50-day EMA at $1.41. A break below these would expose the upward-sloping trendline near $1.32. If selling deepens, the February 6 low at $1.12 could be the next downside objective.
(The technical analysis of this story was written with the help of an AI tool.)
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.