XRP extends recovery on fresh ETF inflows, growing risk appetite
- XRP recovers above $1.38 from the weekly low of $1.29, supported by growing risk appetite.
- US-listed XRP ETFs record inflows of $3.32 million amid broadly improving market sentiment.
- XRP’s upside appears limited by the 50-day EMA despite momentum indicators confirming a neutral-to-bullish outlook.
Ripple (XRP) is edging up above $1.38 at the time of writing on Wednesday, buoyed by improving market sentiment after the United States (US) suspended attacks on Iran amid a two-week ceasefire.
Cryptocurrency prices broadly recovered following developments in the Middle East country, with XRP extending gains from its weekly low of $1.29. The remittance token is poised to rise above the $1.40 pivotal level, supported by growing risk appetite.
XRP gains on fresh ETF uptake
Interest in XRP investment products is gaining traction, as reflected by inflows of $3.32 million into US-listed spot Exchange-Traded Funds (ETFs). Cumulative inflows remain steady at $1.21 billion, with net assets under management at $921.57 million, according to SoSoValue data. If ETFs continue to attract inflows, sentiment surrounding XRP will increase, steadying its recovery potential.
Retail interest also shows signs of a potential comeback, with futures Open Interest (OI) rising to $2.50 billion on Wednesday, from $2.38 billion the previous day. A steady increase in the OI supports a sustainable uptrend as investors increase their risk exposure.
Technical outlook: XRP tests recovery strength
XRP is trading above $1.38 as its near-term bias turns cautiously bullish. The Moving Average Convergence Divergence (MACD) indicator has confirmed a buy signal, with the histogram expanding into positive territory on the daily chart. At the same time, the Relative Strength Index (RSI) hovers just above 50, hinting at modestly improving momentum. If this momentum steadies, XRP could extend gains above $1.40 and $1.45 as the next upside objectives.
However, the remittance token remains structurally constrained by the 50-day Exponential Moving Average (EMA) at $1.42. A sustained break above this threshold would be needed to ease near-term pressure at $1.45 and open the way toward the 100-day EMA near $1.58, and the 200-day EMA around $1.84.
On the downside, immediate support is seen at $1.32, guarding last week’s $1.30 congestion band, with further protection at $1.28. A break below the latter would reopen the $1.25 area, leaving XRP vulnerable to a deeper retracement.
Open Interest, funding rate FAQs
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
(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
