XRP price prediction as Crypto Fear and Greed Index hits 83

$XRP price held steady on Tuesday morning as Bitcoin and the broader cryptocurrency market gained momentum. $XRP was trading at $1.5120, well above its year-to-date low of $0.9885.

The rally could extend further as strong ETF inflows and growing adoption of Ripple USD ($RLUSD) provide additional catalysts for demand.

$XRP ETF inflows are soaring

There are signs that investors are embracing a risk-on sentiment in the crypto industry. For one, the Crypto Fear and Greed Index has jumped to the extreme greed zone of 83, its highest level in months.

Historically, crypto prices rally when there is a sense of greed in the market. However, bear markets also happen when greed levels rise. The rising greed has led to higher crypto prices, with Ethereum hitting the resistance level of $2,500. Bitcoin has jumped to over $80,000, while the market capitalization of all coins jumped to over $2.7 trillion.

The ongoing $XRP rally has fueled stronger inflows into spot $XRP ETFs. These funds attracted more than $13.8 million on Monday, following over $18 million in inflows on Friday. They added more than $39 million last week, bringing total inflows for August to approximately $57 million.

Since their launch, spot $XRP ETFs have recorded more than $1.57 billion in cumulative net inflows and now hold around $1.44 billion in assets. Notably, they have experienced just one month of net outflows since receiving approval.

Rising $XRP ETF inflows is a sign that demand among investors continues to rise. The same is happening in terms of whale purchases, which have continued rising in the past few months.

$RLUSD growth is gaining momentum

Meanwhile, data shows that the $XRP Ledger is becoming a major player in the stablecoin industry. DeFi Llama data shows that the amount of stablecoins in the XRPL chain jumped to over $1 billion, a big increase from the year-to-date low of $240 million.

Most of the ongoing surge is because of Ripple USD ($RLUSD), which has now crossed the $2 billion milestone. The amount of $RLUSD in XRPL has moved closer to the $1 billion milestone.

More data shows that the number of daily users has continued rising. It has jumped to over 1.5k from this month’s low of 600. Also, the number of transactions jumped to 140k on August 22nd, the highest level in months.

$XRP price technical analysis

The daily chart shows that the $XRP price bottomed at $0.9885 earlier this month and then rebounded to a high of $1.6930 last week. This surge happened after the coin formed a falling wedge pattern, a common bullish reversal sign in technical analysis.

The coin has remained above the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bulls remain in control. At the same time, the Relative Strength Index (RSI) has moved to the extremely overbought level.

$XRP is in the process of forming a bullish flag pattern. Therefore, the token will likely continue rising, potentially to the key resistance level of $1.6930. A move above that level will point to more gains, potentially to the psychological level of $2.00.

Source: cryptonews.net