XRP builds momentum anchored by steady ETF inflows
- XRP extends its rebound above $1.42, reflecting improving sentiment in the broader crypto market.
- Interest in spot XRP ETFs extended for the sixth consecutive day, with inflows totaling $14 million on Friday.
- The 50-day EMA serves as immediate support at $1.41, while momentum indicators maintain a neutral-to-bullish bias.
Ripple (XRP) edges up above $1.42 at the time of writing on Monday, following two consecutive days of price correcting from last week’s high of $1.47. A strong support level appears to be forming at the broken resistance around $1.40, increasing the odds of a steady rebound.
XRP steady amid ETF inflows
XRP spot Exchange-Traded Funds (ETFs) extended their bullish streak for the sixth consecutive day with nearly $14 million in inflows on Friday. Cumulative inflows reached $1.27 billion on Friday, with net assets under management averaging $1.11 billion. The steady risk appetite aligns with the improving sentiment and XRP’s growing recovery potential.
Market sentiment across the cryptocurrency landscape continues to recover, prompting increased investor participation, particularly in the ETF segment. The crypto Fear & Greed Index holds at 29 on Monday, advancing from last week’s extreme fear reading of 12.
Meanwhile, after the recent growth in the XRP derivatives market, which pushed futures Open Interest (OI) to $2.80 billion on Saturday, CoinGlass data shows that OI is cooling, averaging $2.56 billon on Monday. Hence, if a risk-off mood becomes dominant and OI keeps falling, XRP recovery may fail to gain traction.
Technical outlook: XRP upholds a neutral-to-bullish outlook
XRP trades at $1.42, holding just above the 50-day Exponential Moving Average (EMA) at $1.41 while oscillating around the 23.6% Fibonacci retracement at $1.42, applied on the daily chart between the January 6 high of $2.41 the February 6 low of $1.12. This outlook upholds a neutral-to-slightly-bullish near-term tone as long as the immediate support is defended.
The Relative Strength Index (RSI) around 55 on the daily chart and the Moving Average Convergence Divergence's (MACD) positive histogram suggest constructive, but not overstretched, upside momentum, even as the price remains well-capped beneath the 100-day and 200-day EMAs.
On the topside, initial resistance emerges at the 100-day EMA near $1.54, ahead of the 38.2% Fibonacci retracement at $1.61. A daily close above these barriers would strengthen the recovery attempt toward $1.76 and the 200-day EMA around $1.80. On the downside, immediate support is at the 50-day EMA at $1.41, with a deeper pullback exposing the ascending trendline around $1.31.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.
The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.
(The technical analysis of this story was written with the help of an AI tool.)
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
