XRP regains momentum amid mild ETF inflows
- XRP extends daily gains above $1.46, aiming for a decisive breakout above $1.50.
- XRP retail traders pay a premium on long positions as Open Interest-Weighted Funding Rate lifts to 0.0105%.
- XRP spot ETFs extend bullish streak with $5 million in mild inflows on Tuesday.
- Momentum indicators align in support of a short-term rebound, with the MACD maintaining a buy signal.
Ripple (XRP) is rising on Wednesday alongside crypto majors including Bitcoin (BTC) and Ethereum (ETH). After testing support around $1.42 the previous day, the remittance token trades above $1.46, signaling easing selling pressure as technicals align for a potential range breakout above $1.50.
XRP rebounds amid mild capital inflows
Institutions continued to accumulate XRP through spot Exchange-Traded Funds (ETFs), beating both BTC and XRP, which saw outflows, to post mild inflows of approximately $5 million on Tuesday. SoSoValue data indicates that XRP has logged three consecutive days of positive inflows, with approximately $6 million recorded on Friday and nearly $26 million on Monday.
Cumulative inflows now stand at $1.36 billion, with net assets under management averaging $1.16 billion. If the capital inflows persist despite softening crypto market sentiment, XRP would leverage institutional appetite to sustain its recovery in the short to medium-term.
The crypto Fear & Greed Index has declined to 42, which is in fear territory on Wednesday, from 49 in the neutral region the previous day, suggesting that overall sentiment remains shaky.
Meanwhile, the derivatives Open Interest-Weighted Funding Rate, which tracks the fees traders pay to keep short and long positions open, remains in the positive territory at 0.0105%.
Positive funding rates indicate that long-positioned traders remain dominant and are willing to pay a premium to maintain their leveraged orders. This suggests increasing conviction that a price breakout above $1.50 is likely in the near term.
Nevertheless, traders should remain alert, as the funding rate is at its highest level since March, and if XRP fails to sustain its uptrend or is rejected at $1.50, liquidations could trigger a reversal below $1.40.
Technical analysis: XRP steadies above key support
XRP trades at $1.46, holding above the 50-day Exponential Moving Average (EMA) near $1.42 and the SuperTrend support around $1.33, hinting at a constructive undertone, yet it remains capped by the 100-day EMA around $1.50, converging with the descending trendline.
The Relative Strength Index (RSI) is hovering just below 60 on the daily chart, while a positive, mildly rising Moving Average Convergence Divergence (MACD) histogram suggests improving bullish momentum. Still, buyers need to clear the clustered overhead resistance to unlock a stronger advance.
On the topside, initial resistance emerges at the 100-day EMA, which converges with the descending overhead trendline around $1.50, while the 200-day EMA at $1.71 forms a broader bullish threshold. On the downside, immediate support is seen at the 50-day EMA around $1.42, with the SuperTrend line near $1.33 acting as a deeper floor that would need to hold to prevent a shift back toward a more bearish bias.
(The technical analysis of this story was written with the help of an AI tool.)
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.
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
