|

XRP holds key support as ETF inflows, derivatives market demand strengthen

  • XRP trades well above pivotal $1.40 level, supported by increasing demand for spot ETFs and derivatives.
  • Three XRP ETF operators recorded inflows totaling nearly $12 million on Thursday.
  • Renewed retail demand boosts the XRP derivatives market with futures Open Interest rising to $2.71 billion.

Ripple (XRP) is trading at $1.44 at the time of writing on Friday, its upside seemingly capped by its weekly peak around $1.47. Still, the overall tone remains bullish as the remittance token holds above key support levels at $1.40 and $1.30.

XRP buoyant amid renewed retail and institutional demand

The XRP derivatives market is gaining traction as Open Interest (OI), reflecting the notional value of outstanding futures and options contracts, increased to to $2.71 billion on Friday from $2.58 billion the previous day.

On Monday, the OI averaged $2.38 billion, underscoring growing risk appetite and retail capital influx. XRP requires a highly concentrated retail market to sustain short to medium-term gains.

XRP Futures OI | Source: CoinGlass

XRP spot Exchange-Traded Funds (ETFs) also uphold a positive outlook, evidenced by the $11.87 million in inflows on Thursday. SoSoValue data shows that US-listed XRP spot ETFs have maintained a bullish streak for five consecutive days, bringing cumulative inflows to $1.26 billion and net assets under management to $1.08 billion.

XRP ETF flows | Source: SoSoValue

Technical outlook: XRP rebound takes a breather as support holds

XRP trades at $1.44 while holding above the 50-day Exponential Moving Average (EMA), providing support at $1.41. The overall technical outlook hints at a constructive short-term tone, yet it remains well below the 100-day EMA near $1.55 and the 200-day EMA at $1.82, both of which keep the broader recovery capped.

Meanwhile, momentum remains supportive, with the Relative Strength Index (RSI hovering just below overbought territory near 61 on the daily chart and the Moving Average Convergence Divergence (MACD) line holding above zero with a positive histogram. This suggests that buyers retain control despite supply overhead.

XRP/USDT daily chart

On the topside, XRP's initial resistance lies at the 100-day EMA around $1.55. Reclaiming that moving average as support would open the way toward the more significant 200-day EMA near $1.82. On the downside, immediate trader focus is on the $1.44–$1.45 area around the current price, with the 50-day EMA at $1.41 providing the first notable support. A break below the same area would likely expose a deeper pullback toward the weekly open at $1.32. 

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.)

Author

John Isige

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

More from John Isige
Share:

Editor's Picks

XRP ticks up as risk-off mood, weak ETF demand cap recovery

Ripple (XRP) rebounds above $1.23 from support at $1.20 at the time of writing on Wednesday, as the broader cryptocurrency market pares losses triggered by escalating tensions in the Middle East.

Crypto Today: Bitcoin, Ethereum pare losses as XRP rebounds amid escalating tensions in the Middle East

The cryptocurrency market remains largely under pressure on Wednesday amid escalating tensions in the Middle East. After plunging from its May high of $82,823, Bitcoin (BTC) is showing signs of stabilization, consolidating above the key $67,000 support level.

Bitcoin takes a breather above $65,000 amid swelling institutional pressure

Bitcoin hovers above $67,000 as of Wednesday, taking a breather after over 6% loss the previous day. Whales are reducing their BTC holdings, likely influenced by the 12-day streak of ETF outflows.

Ondo extends gains, defying the broader market crash

ONDO extends gains on Wednesday, after rising 9% the previous day. Early access to Ondo Perps, offering 24/7 perpetual futures on US stocks, ETFs, and commodities, fuels the recovery.

Billions in ETF outflows don’t bode well
Bitcoin (BTC) remains under pressure, trading below $74,000 on Friday, and is set to post its third consecutive week of losses. The institutional sell-off continues, with spot BTC Exchange-Traded funds (ETFs) recording billions in outflows. In addition, sticky inflation and macroeconomic headwinds suppress the Crypto King’s upside potential. Institutional demand continues to weaken so far this week.