XRP recovers backed by sustained ETF inflows as bulls defend 200-day EMA
- XRP ticks up as bulls defend the 200-day EMA support at $1.35.
- US-listed XRP ETFs record nine consecutive days of inflows, reinforcing steady institutional interest.
- XRP upholds a constructive bullish bias but risks extending the correction if momentum indicators deteriorate.
Ripple (XRP) rises above a short-term key support on Monday and trades around $1.37 at the time of writing. The remittance token upholds a broad bullish outlook, supported by steady institutional interest. Still, traders should temper expectations as momentum indicators cool following the recent rally that tagged highs of $1.70 on August 22.
XRP ETF demand backs bullish outlook
Institutional interest in XRP has been persistent for nearly two weeks, aligning with improved market sentiment. According to the Fear & Greed Index, sentiment stands at 62 on Monday, down only slightly from 69 the day before. Looking back, market sentiment averaged 27 in July, underscoring growing appetite for XRP-related investment products.
XRP spot Exchange-Traded Funds (ETFs) extended the bullish streak, marking the ninth consecutive day with $26 million recorded on Friday. This brought cumulative inflows to $1.66 billion while net assets under management average $1.44 billion. If sustained, ETF inflows could absorb selling pressure in the open market, supporting stability and potential price increases.
Technical analysis: XRP clings to key support
XRP trades at $1.37, extending its advance above the key Exponential Moving Averages (EMAs) and maintaining a bullish near-term bias. The spot price holds firmly over the 200-day EMA at $1.35, while the 100-day and 50-day EMAs at $1.21 sit well below, reinforcing a supportive structure after the recent breakout.
Momentum remains constructive, with the Moving Average Convergence Divergence (MACD) histogram positive and the Relative Strength Index (RSI) hovering around 62, hinting that buyers still control the tape, though conditions are no longer overbought.
On the downside, immediate support is at $1.35, where the 200-day EMA aligns as the first structural floor, followed by deeper demand around $1.21, marked by the 100-day and 50-day EMAs. As long as the pair holds above these moving averages, the technical tone should remain constructive, with any pullback toward the 200-day EMA likely to be viewed as a dip within a broader bullish phase rather than a trend reversal.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
