XRP gains momentum supported by mild inflows into ETFs

Ripple (XRP) edges higher at the time of writing on Thursday, trading above $1.12. The cross-border remittance token seeks to erase a persistent downtrend that has weighed on the price since mid-May, as investors navigated geopolitical tensions in the Middle East.

An imminent peace agreement remains elusive as the United States (US) and Iran continue to exchange fire. US President Donald Trump has insisted that Iran is taking too long to sign the peace deal. Following the statement, the US military launched multiple attacks on Iran, describing them as “self-defense.”

Iran’s Islamic Revolutionary Guards Corps (IRGC) launched strikes against US military installations in Kuwait, Bahrain, and Jordan.

XRP ETFs extend inflow streak

Institutional investors are cautiously increasing their exposure to digital assets, as evidenced by nearly $1.2 million in inflows into spot Exchange-Traded Funds (ETFs) on Wednesday. This follows approximately $7.44 million in inflows on Tuesday, indicating persistent demand for related crypto investment products.

Cumulative inflows now average $1.43 billion, with assets under management totaling $949 million, according to SoSoValue data.

Conversely, retail demand remains on the back foot, with futures Open Interest (OI) steadying at $2.41 billion on Thursday. The OI averaged $2.44 billion on Sunday and was slightly above $3 billion on May 15.

A persistent sell-off in the derivatives market signals diminishing investor confidence in XRP’s ability to sustain its upward trajectory, with market participants reluctant to open new positions.

Price analysis: XRP rebounds as key suppprt holds

XRP trades at $1.12, while holding firmly below the 50-day, 100-day and the 200-day Exponential Moving Averages (EMAs) at $1.30, $1.40 and $1.61, respectively, keeping the broader tone bearish. The latest SuperTrend reading at $1.26 also sits well above spot, reinforcing the view that current price action remains capped, while the Relative Strength Index (RSI ) near 33 on the daily chart hints at weak but not extreme selling pressure as the Moving Average Convergence Divergence (MACD) histogram stays in negative territory.

On the topside, initial resistance emerges at the SuperTrend barrier around $1.26, followed by the 50-day EMA at $1.30. A stronger recovery would face subsequent hurdles at the 100-day EMA near $1.40 and the more distant 200-day EMA around $1.61. If rebounds get sold and XRP resumes its decline, bulls will eye support at psychological levels, including $1.05 and $1.00, respectively.

(The technical analysis of this story was written with the help of an AI tool.)