Ripple Forecast: XRP recovery gains momentum amid strong technical indicators
- XRP extends gains for a second consecutive day, targeting a short-term breakout above the 100-day EMA.
- US-listed XRP spot ETFs post mild inflows of $2 million on Wednesday.
- XRP presents an improving technical structure, defined by an uptrending RSI and MACD buy signal.
Ripple (XRP) remains in bullish hands, as price action extends above $1.16 at the time of writing on Thursday. Since Monday, the cross-border remittance token has surged by more than 20%, reflecting a steady growth in risk-on sentiment.
The broader crypto market sentiment is on an upward roll at 62 in the Greed territory on Thursday, up from 46 the previous day, according to the Fear & Greed Index. The index is now at the same level as in January, suggesting appetite for XRP is growing.
XRP sees modest ETF inflows
Institutional interest in XRP spot Exchange-Traded Funds (ETFs) has returned this week, with mild inflows totaling $2.35 million on Wednesday and $5.81 million on Tuesday. This follows an extended period of muted activity that aligned with the broader cryptocurrency market's doldrums.
Cumulative inflows now stand at $1.52 billion, with net assets averaging $1.01 billion, according to SoSoValue. This underpins a long-term investor outlook in XRP and related digital investment products.
Still, the retail demand is lagging the bullish price action, as perpetual futures Open Interest (OI) declines to 2.54 billion XRP on Thursday, from 2.73 billion the previous day. If OI fails to catch up with the price increase, a pullback could follow as the market stabilizes before the next leg.
Technical analysis: XRP builds momentum
XRP trades at $1.16, holding a bullish near-term bias as the spot price stands above the key short and medium-term Exponential Moving Averages (EMAs). The 50-day Exponential Moving Average (EMA) at $1.08 and the 100-day EMA at $1.15 underpin the advance as layered support, while the SuperTrend indicator at $1.01 reinforces the broader constructive structure after the recent breakout.
Momentum is supportive, with the Relative Strength Index (RSI) hovering just below overbought territory near 70 and the Moving Average Convergence Divergence (MACD) above zero with a strengthening positive reading, suggesting buyers retain control. However, the rally appears stretched at these levels.
The next significant obstacle emerges at the 200-day EMA, now tracking near $1.34, which represents the first major resistance level and a potential cap for further gains unless decisively reclaimed. On the downside, initial support is at the 100-day EMA at $1.15, with additional support from the 50-day EMA at $1.08 and the SuperTrend line around $1.01, where a deeper pullback would likely attract dip-buying interest. As long as XRP holds above these clustered daily supports, the technical tone would favor further upside probes toward the 200-day EMA, even if short-term consolidation is needed to alleviate overbought readings.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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.
