XRP tests key support as ETF demand stays resilient
- XRP remains technically weak, testing support at $1.40 on Thursday.
- XRP’s downward trajectory may persist as key momentum indicators weaken.
- XRP spot ETFs and derivatives demand hold steady as market participants remain confident despite the correction from weekly highs.
Ripple (XRP) is grinding lower toward the $1.40 short-term support area at the time of writing on Thursday. The correction from the weekly high at $1.46, reached the previous day, aligns with the broader crypto market, which has seen Bitcoin (BTC) test support at $80,000 after hitting a three-month high at $82,850.
Stable ETF inflows, retail growth support XRP
Market participants have maintained confidence in XRP, increasing exposure through spot Exchange-Traded Funds (ETFs) and derivatives. After facing volatility last week, US-listed XRP spot ETFs recorded increasing inflows from Monday’s $3.87 million, Tuesday’s $11.28 million and Wednesday’s $13.03 million. SoSoValue data shows that cumulative inflows now average $1.32 billion, with net assets under management at $1.11 billion.
The increase in demand for XRP ETFs aligns with rising market sentiment, as reflected in the Crypto Fear & Greed Index, which holds at 47 on Thursday, marginally up from 46 the day before. Sustained price rallies in crypto markets are typically underpinned by robust demand and persistently positive investor sentiment.
The derivatives market also shows increasing strength, albeit gradually, with the futures Open Interest (OI) rising to $2.61 billion on Thursday from $2.59 billion the previous day.
Despite the mild increase, the current retail demand pales in comparison to the OI peak of $10.94 billion reached in July, around the time XRP hit a new record high of $3.66. For a sustained bullish outlook over the medium- to long-term, open interest should rise in tandem with price appreciation.
Technical outlook: XRP downside risks escalate as $1.40 support holds
XRP trades above $1.41, holding marginally above the 50-day Exponential Moving Average (EMA) at $1.41, which offers initial trend support but is still well beneath the 100-day and 200-day EMAs at $1.50 and $1.74. This configuration hints at a neutral-to-mildly constructive near-term bias, with the pair attempting to stabilize within a broader corrective context.
Meanwhile, the Relative Strength Index (RSI) around 52 on the daily chart suggests balanced momentum after the latest pullback, while the Moving Average Convergence Divergence (MACD) histogram has inched back above the zero line, hinting at a tentative recovery in buying pressure rather than a decisive bullish shift.
On the topside, immediate resistance emerges at the descending trendline break area near $1.45, where prior rallies have struggled, followed by the 100-day EMA at $1.50 and then the more distant 200-day EMA at $1.74, which continues to cap the larger bearish structure. On the downside, the 50-day EMA at $1.41 is the first level to watch as short-term support. A clear daily close back below this floor would expose a deeper retracement and undermine the nascent improvement in momentum.
(The technical analysis of this story was written with the help of an AI tool.)
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.
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
