XRP stabilizes near $2.00 as ETF inflows bolster outlook
- XRP holds ground, eyeing support at $2.00 as the crypto market widely recovers on Monday.
- XRP ETFs record 20 consecutive days of inflows, underscoring growing institutional appetite.
- Retail demand rises marginally, with the Open Interest averaging $3.72 billion.
Ripple (XRP) is holding ground slightly below $2.00 at the time of writing on Monday amid a generally bearish outlook across the broader cryptocurrency market. Steady institutional demand and a marginal increase in retail demand could boost momentum in the coming days, with XRP expected to edge up above the $2.00 pivotal level.
XRP ETFs extend inflows
US-listed XRP spot Exchange Traded Funds (ETFs) extended their 20-day inflow streak on Friday, with approximately $20 million deposited. Franklin Templeton’s XRPZ ETF led with $8.7 million in inflows, followed by Bitwise’s XRP with nearly $8 million and Canary Capital’s XRPC with $3.6 million.
The cumulative inflow volume stands at $991 million, while net assets average $1.18 billion. A break above the $1 billion milestone in total inflows could boost interest in XRP-related investment products.
Despite XRP futures Open Interest (OI) rising marginally to $3.71 billion on Monday, from $3.57 billion the previous day, retail demand has not recovered to levels seen before the October 10 deleveraging event. The widespread crash liquidated over $19 billion in crypto assets, wiping out $610 million in XRP long positions and approximately $91 million in shorts.
Retail interest in XRP remains significantly low despite the futures OI, compared to the $10.94 billion peak on July 22, after XRP hit a new record high of $3.66 on July 18. A sustained recovery in OI is required to support price advance beyond the $2.00 key level.
Technical outlook: Can XRP extend short-term recovery?
XRP is hovering at $1.98 and below the down-trending 50-day Exponential Moving Average (EMA), the 100-day EMA and 200-day EMA, keeping the bias generally bearish. The Moving Average Convergence Divergence (MACD) line (blue) on the daily chart sits below the signal line (red), backing the bearish thesis. Moreover, histogram bars have turned marginally negative under the mean line, which suggests fading upside momentum.
The Relative Strength Index (RSI) on the same chart holds at 40 in the bearish region, indicating rebounds may fail to gain momentum in the short-term.
A descending trendline from the record high of $3.66 limits XRP's upside, with resistance seen near $2.54. An accelerated descending trendline from $3.09 restricts gains below $2.12. Meanwhile, the rising trendline from $1.45 underpins a developing bullish bias, offering support near $1.96.
A close above the 50-day Exponential Moving Average (EMA) at $2.21 could ease bearish pressure and pave the way for an upswing toward the next trendline cap at $2.54. Still, a close below $2.00 would reassert sellers and increase the chances of the decline extending to November's low of $1.82.
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
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
