Ripple (XRP) gains momentum, albeit gradually, trading above $1.40 at the time of writing on Tuesday. The remittance token has, along with the broader crypto market, shown resilience amid the conflict in the Middle East, especially with the United States (US)-Iran ceasefire coming under immense strain.
Appetite for risk assets, including XRP, has stabilized over the last few weeks, as reflected by the Crypto Fear & Greed Index rising to 50 on Tuesday in the fear territory, from 40 the previous day.
XRP ETF inflows return amid steady retail demand
Interest in XRP spot Exchange-Traded Funds (ETFs) has generally been whipsawing, suggesting that investors are cautiously optimistic about a bullish short- to medium-term outcome.
US-listed XRP spot ETFs saw mild inflows totaling $3.87 million on Monday, following muted activity on Friday, reinforcing the above analysis.
Still, cumulative inflows stand at $1.29 billion, with net assets under management at $1.07 billion. Steady inflows into ETFs are important for maintaining positive market sentiment and increasing the likelihood of a sustained breakout and an uptrend.
Turning to the derivatives market, interest remains on the back foot, considering the perpetual futures Open Interest (OI) steadied at $2.54 billion on Monday, up slightly from $2.50 billion the previous day.
Conversely, OI surged to $10.94 billion in July, mirroring XRP’s all-time high of $3.66. This highlights the pivotal role of retail participation in driving and maintaining upward price momentum.
Technical outlook: XRP eyes key range breakout
XRP trades above $1.4, maintaining a bearish near-term bias as it sits beneath a dense band of moving average resistance. The token is marginally below the 50-day Exponential Moving Average (EMA) at $1.41 and well under the 100-day and 200-day EMAs at $1.51 and $1.74, respectively. This outlook suggests rallies remain capped for now.
Meanwhile, the Relative Strength Index (RSI) at 52 on the daily chart leans slightly positive but still looks more consistent with consolidation than a decisive bullish impulse. At the same time, the negative but contracting Moving Average Convergence Divergence (MACD) histogram on the same chart hints that downside momentum is fading rather than reversing.
On the topside, immediate resistance is set by the 50-day EMA at $1.41, with stronger barriers emerging near the confluence of the longer-term downtrend structure and the 100-day EMA in the $1.51 area.
A daily close above that zone would be needed to ease the prevailing bearish tone and open the way toward the 200-day EMA at $1.74. On the downside, the daily low at $1.39 serves as the immediate support, followed by the monthly open around $1.37.
(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.