XRP rises as crypto market steadies despite Middle East war
- XRP extends gains for the second consecutive day as crypto prices steady despite the Middle East war.
- Investors increase their exposure through ETFs, with cumulative inflows reaching $1.26 billion on Wednesday.
- Demand for XRP derivatives returns, with futures Open Interest increasing slightly to $2.35 billion on Thursday.
Ripple (XRP) continues to demonstrate notable resilience as the cryptocurrency market navigates the persistent war in the Middle East after the United States (US) and Israel attacked Iran on Saturday.
The remittance token is trading above $1.44 at the time of writing on Thursday, up from its daily open of $1.43. Meanwhile, sentiment in the broader crypto market is improving, with the Fear & Green Index rising to 22, from 10 on Wednesday.
Institutional and retail interest steadies XRP price
Investors seeking exposure to XRP through Exchange-Traded Funds (ETFs) continue to do so despite the war-driven uncertainty in the Middle East. Over the past seven days, US-listed spot XRP ETFs have attracted inflows, with approximately $4 million recorded on Wednesday. Canary Capital’s XRPC ETF accounted for all the inflows, as activity remained muted across the rest of the products. Cumulative inflows ticked up, reaching $1.26 billion on Wednesday, up from $1.25 billion the previous day. Total assets under management hold above $1 billion, according to SoSoValue data.
Retail investors have also shown signs of returning to the market, as reflected in futures Open Interest (OI), which has risen to $2.35 billion on Thursday from $2.11 billion the previous day. Although the OI holds significantly below the record $10.94 billion reached in July, the mild increase could help shape XRP’s short-term outlook if it holds.
Technical outlook: XRP shows early signs of strength
XRP hovers above $1.44 as its short-term outlook turns mildly bullish, supported by a gradually increasing Relative Strength Index (RSI) at 49 on the daily chart. The Moving Average Convergence Divergence (MACD) indicator remains above its signal line on the same chart, with green histogram bars expanding. If this short-term bullish case holds, XRP could drift higher toward the 50-day Exponential Moving Average (EMA) at $1.57.
Meanwhile, a descending resistance trend line from $2.40 has repeatedly capped rebounds and still overhangs the price despite a test of the immediate resistance around $1.44. A daily close above this supply zone is needed to open the way to the 50-day EMA at $1.57 and, later, the 100-day EMA at $1.78. On the downside, immediate support lies at the daily low at $1.43. A loss of this level would expose the demand zone at $1.35, aligning with Wednesday's low.
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.
(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
