XRP extends rebound as risk-on mood lifts ETF and derivatives demand
- XRP reclaims $1.45 as support, rising alongside major crypto assets on Wednesday.
- XRP sees a steady growth in risk-on sentiment as capital flows into spot ETFs and derivatives.
- XRP's technical indicators suggest bullish potential, with the RSI rising sharply above the midline and the MACD showing a buy signal.
Ripple (XRP) exhibits increasing bullish strength, rising above $1.45 at the time of writing on Wednesday, building on growing risk appetite after the United States (US) paused “Project Freedom,” citing great progress toward a final peace agreement with Iran.
Sentiment in the crypto market remains relatively upbeat, with the Fear & Greed Index holding at 46 on Wednesday, down slightly from 50 the previous day. A distinct risk-on environment continues to underpin XRP’s bullish momentum, increasing the probability of sustained price increases.
XRP regains investor confidence amid capital inflows
Demand for XRP spot Exchange-Traded Funds (ETFs) gained momentum, with inflows totaling $11.28 million on Tuesday, up from $3.87 million the previous day. Cumulative inflows now stand at $1.31 billion, with net assets under management averaging $1.09 billion, according to SoSoValue.
Should institutional investors continue to ramp up risk exposure in line with strengthening market sentiment, XRP is well positioned to rally further, building on its recent recovery above the $1.45 support level.
The derivatives market also shows increasing strength, albeit gradually, with the futures Open Interest (OI) rising to $2.59 billion on Wednesday, down from $2.54 billion the day before.
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. Hence, OI should increase alongside the price to ascertain a medium- to long-term bullish outlook.
Technical outlook: XRP ticks up as selling cools
XRP trades at $1.45, maintaining a constructive near-term bullish bias as price trades above the 50-day Exponential Moving Average (EMA) at $1.41 and the SuperTrend support at $1.32, suggesting dips are being absorbed.
Momentum aligns with this constructive tone, with the Relative Strength Index (RSI) hovering near 61 on the daily chart and the Moving Average Convergence Divergence (MACD) histogram back in positive territory, hinting that buyers retain control within the broader downtrend.
On the topside, initial resistance is seen at the 100-day EMA around $1.51, followed by the descending trendline resistance near $1.57. The 200-day EMA at $1.74 marks a more distant barrier that would need to be reclaimed to strengthen the broader bullish case.
On the downside, immediate support is defined by the 50-day EMA at $1.41, with the SuperTrend line at $1.32 providing a deeper cushion. A daily close below these levels would weaken the current bullish structure and expose a more corrective phase.
(The technical analysis of this story was written with the help of an AI tool.)
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
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
