XRP holds fragile support as futures OI steadies
- XRP declines and trades around $1.40 support, facing capped upside and a weakening technical structure.
- US-listed spot XRP ETFs remained muted on Friday, bringing weekly inflows to $19 million.
- The derivatives market holds steady, with perpetual futures Open Interest (OI) rising marginally to 2.21 billion XRP.
Ripple (XRP) falters, trading near $1.40 at the time of writing on Monday. Since the August rally to $1.70, the remittance token has seen capped upside, prompting profit-taking. If the token’s technical structure continues to weaken, recovery could be an uphill battle, while raising the odds of an extended sell-off.
XRP wobbles amid muted ETF demand
US-listed XRP spot Exchange-Traded Funds (ETFs) remained muted on Friday, without any flows, according to SoSoValue. This suggests institutional investors may be adopting a cautious stance ahead of the Federal Reserve (Fed) decision on interest rates and the ongoing conflict between the United States (US) and Iran.
Despite weak demand, inflows totaled $19 million through Friday, marking an eight-week bullish streak. Meanwhile, cumulative inflows remain steady at $1.68 billion, undermining institutional investors’ long-term positive outlook on XRP. Assets under management hold at $1.48 billion.
The derivatives market has stabilized, with perpetual futures Open Interest (OI) rising only marginally to 2.21 billion XRP on Monday, from 2.2 billion XRP the previous day. While the minor increase is commendable, it falls short compared to the broader correction from 2.78 on August 15. Rising OI is needed to reinforce the bullish outlook and increase the odds of a steady recovery.
Technical analysis: XRP tests key support
XRP trades at $1.40, holding a modest bullish bias as price remains above the main Exponential Moving Averages (EMAs). The 50-day, 100-day and 200-day EMAs at roughly $1.25, $1.24 and $1.36 sit below spot and suggest underlying trend support, even as the recent advance has stalled.
The Parabolic SAR at $1.61 remains well above the market, while the Relative Strength Index (RSI) has eased to about 59, pointing to cooling but still positive momentum after an overbought phase.
On the topside, immediate resistance lies at the downward trendline break level around $1.43, with the Parabolic SAR near $1.61 acting as a higher barrier if buyers extend the move. On the downside, initial support is aligned with the 200-day EMA near $1.36, ahead of a wider demand zone defined by the 50-day EMA at $1.25 and the 100-day EMA at $1.24, where dip-buying interest could re-emerge if the pair corrects lower.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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
