XRP holds support as ETF demand cools and technical barriers cap rebound
- XRP holds lifeline support at $1.38 on Friday as bulls target short-term breakout above $1.40.
- XRP retail and institutional demand cools with Open Interest falling to $2.59 billion amid muted ETF activity.
- The SuperTrend indicator maintains a buy signal despite major moving averages capping XRP’s recovery potential.
Ripple (XRP) appears to have found support at $1.38 on Friday, after a significant correction following its weekly high at $1.47, tagged on Wednesday. The remittance token shows subtle rebound signals, aiming for a short-term breakout above the $1.40 supply threshold.
Cooling market interest weighs on XRP
Institutional demand for XRP spot ETFs stalled on Thursday, as SoSoValue reported zero inflows. This marks a pause after three consecutive days of robust inflows: $3.87 million on Monday, $11.28 million on Tuesday, and $13.03 million on Wednesday.
Despite softening demand, cumulative inflows average $1.32 billion, up from $1.29 billion on Monday. Total assets under management stand at $1.08 billion, up slightly from $1.07 billion in the same period.
XRP derivatives demand cooled on Friday to $2.59 billion, from $2.61 billion the previous day. Despite the XRP price showing subtle signs of a rebound toward $1.40, softening retail demand suggests sellers are increasingly opening short positions, anticipating a break below the daily support at $1.38.
Meanwhile, with liquidity clustered around the $1.40 supply area, heightened volatility could challenge the bulls’ short-term objective.
Technical outlook: XRP tests rebound strength despite limited upside
XRP trades at $1.39, keeping a bearish near-term bias as price remains capped beneath a pack of key moving averages. The 50-day Exponential Moving Average (EMA) at $1.41 is the first barrier overhead, with the longer-term 100-day and 200-day EMAs at $1.50 and $1.72 reinforcing a broader downside tone.
A downtrend resistance line, whose break level aligns at $1.45, further limits bullish ambitions. Moreover, the Relative Strength Index (RSI) is near 49 on the daily chart, while a slightly negative Moving Average Convergence Divergence (MACD) histogram hints at lackluster momentum rather than an imminent upside breakout.
On the downside, initial demand is seen at the SuperTrend line, now providing support around $1.32 and marking the first level where dip buyers could attempt to steady the market.
On the topside, a sustained close above the 50-day EMA at $1.41 would be the first sign of easing bearish pressure, exposing the descending trendline resistance near $1.45. Further gains would then bring the 100-day EMA at $1.50 into focus, ahead of the more distant 200-day EMA at $1.72.
(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
