Ripple (XRP) declines from highs around $1.50 and tests a short-term $1.45 support at the time of writing on Monday. The remittance token reflects a sudden shift in broader crypto market sentiment as fresh tensions in the Middle East have further challenged the path to a lasting peace agreement between the United States (US) and Iran.
Middle East tensions weigh on XRP despite capital inflows
United States President Donald Trump has rejected Iran’s counterproposal to end the war in the Middle East, saying that it is “totally unacceptable.” According to a CNN report, the proposal leaned on Iran’s sovereignty over the Strait of Hormuz while seeking compensation for war damages.
Following Trump’s remarks, Iranian Foreign Ministry spokesperson Esmail Baghaei said that everything in the proposal was “reasonable” and “generous” for Iran’s national interests as well as for the region’s and the world’s stability, the CNN report added.
The broader crypto market, which has in the last few weeks priced in a potential final peace agreement amid the ongoing but fragile ceasefire, shows signs of exhaustion, with XRP down at least 1.36% on the trading day.
Meanwhile, appetite for XRP-related digital investment products remained steady last week, as reflected by nearly $40 million in inflows, according to a CoinShares report published on Monday. Total assets under management average $2.5 billion, the fourth-largest as per the chart below.
XRP spot Exchange-Traded Funds (ETFs) accounted for approximately $34 million of the above-mentioned $40 million in total inflows into digital investment products. Cumulative ETF inflows now stand at $1.32 billion, with net assets under management averaging $1.12 billion.
Despite the sudden pressure on XRP on Monday, retail demand continues to increase, as futures Open Interest (OI) remains at $2.87 billion, up from $2.65 billion the previous day. A further increase in OI would suggest strong investor conviction in XRP’s ability to sustain its rebound.
Technical outlook: XRP tests rebound strength above support
XRP trades at around $1.45, while holding well above the 50, 100, and 200 Exponential Moving Averages (EMAs) clustered between roughly $1.42 and $1.40 on the 4-hour chart, which suggests a constructive near-term bias. Still, the near-term $1.50 supply area caps the medium-term recovery.
Meanwhile, momentum readings are positive but not extreme, with the Relative Strength Index RSI) hovering in the high-50s on the 4-hour chart and the Money Flow Index (MFI) easing from prior overbought territory, hinting at a pause rather than an outright reversal after the recent surge. Although the Moving Average Convergence Divergence (MACD) histogram is marginally positive on the same chart, it is contracting and starting to weigh on the momentum.
On the downside, initial support is seen at the 50 EMA around $1.42, ahead of the 100 EMA near $1.41 and the 200 EMA at $1.40, where buyers would be expected to defend the short-term uptrend on dips. On the topside, the next notable hurdle is aligned with the double-top pattern’s resistance marginally above $1.50. A decisive break above this barrier would open the door for a more extended advance.
(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.