XRP struggles below resistance despite growing derivatives demand
- XRP faces headwinds below the $1.40 supply range as major moving averages weigh.
- Institutional investors signal renewed confidence in XRP ETFs, with $1.46 million in inflows on Monday.
- The XRP derivatives market strengthens, supported by futures Open Interest rising to $2.57 billion on Tuesday.
Ripple (XRP) hovers around $1.37 at the time of writing on Tuesday, with its upside largely capped below the $1.40 supply threshold. Prior to the stagnation, the remittance token maintained momentum from the weekly open at $1.32, underscoring an improving outlook and building on both institutional and retail demand.
XRP ETFs, derivatives gain on renewed investor interest
XRP is experiencing a mild return in risk appetite from both institutional and retail market participants. US-listed XRP spot Exchange-Traded Funds (ETFs) extended a two-day bullish streak, attracting $1.46 million in inflows on Monday and roughly $9.00 million on Friday.
Cumulative inflows now stand at $1.22 billion, with net assets under management averaging $959 million, according to SoSoValue data. If the risk-on sentiment holds and draws investor interest, XRP could gain momentum, driving prices above $1.40.
XRP is also experiencing a mild influx of retail capital, as futures OI rises to $2.57 billion on Tuesday, from $2.38 billion the previous day.
A growing, liquid derivatives market could serve as a foundation for sustained price recovery, as seen in July, when OI peaked at a record $10.94 billion, and XRP hit an all-time high of $3.66. This growth in derivatives demand underpins investor confidence and supports sustained price increases.
Technical outlook: XRP struggles to break $1.40 resistance
XRP trades around $1.37, maintaining a bearish near-term bias as it holds beneath the major moving averages. The remittance token remains capped first by the 50-day Exponential Moving Average (EMA) at $1.41, with the 100-day EMA at $1.56 and the longer-term 200-day EMA at $1.81 reinforcing a broader downside tone.
At the same time, the downward-sloping resistance trendline that could be reclaimed near $1.73 underscores the still-dominant selling pressure. The Relative Strength Index (RSI) at 51 on the daily chart is broadly neutral, suggesting a consolidation phase rather than a sharp downside move. Moreover, the Moving Average Convergence Divergence (MACD) remains modestly positive on the same chart, hinting that any recovery attempts could struggle while these overhead barriers remain intact.
On the topside, XRP's immediate resistance is at the 50-day EMA near $1.41. A daily close above this level would ease current pressure and open the way toward the 100-day EMA around $1.56. Further up, the descending trendline marks another barrier around $1.73, followed by the 200-day EMA near $1.81, which forms a broader supply zone that would need to be cleared to support a sustainable bullish reversal. The weekly open at roughly at $1.32 is XRP's next key demand zone, followed by the pivotal $1.30 level.
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
