What’s next for XRP as fragile technical structure persists?

Ripple (XRP) retains a neutral-to-bullish outlook, trading at $1.37 on Tuesday. The remittance token upside has remained broadly constrained since the rally to $1.70 on August 17. The $1.35 level, anchored by a key moving average, continues to act as critical support, offering a potential foothold for XRP as the market eyes a possible rebound.

XRP attracts steady ETF inflows on sustained appetite

Risk appetite remains relatively elevated, underpinned by sustained bullish sentiment across broader markets. The Fear & Greed Index printed 69 on Tuesday in the Greed territory, up from 62 the previous day, reflecting a modest uptick in investor confidence.

If sustained, higher demand for XRP-related digital asset investment products could cushion headwinds and raise the odds of a renewed recovery.

XRP spot Exchange-Traded Funds (ETFs) logged a tenth straight day of inflows, adding nearly $6 million on Monday. Despite a drop from $26 million posted last Friday, cumulative inflows have reached $1.66 billion. Meanwhile, average net assets under management are steady at $1.45 billion.

Conversely, derivatives are in a persistent decline, as perpetual futures Open Interest (OI) fell to 2.29 billion XRP on Tuesday, up from 2.2 billion XRP the day before. More broadly, OI peaked at 2.78 billion in August, undermining demand and risk appetite. A deeper sell-off could add to headwinds in the spot market, as the odds of an extended decline rise.

Technical analysis: XRP struggles to uphold bullish outlook

XRP trades above $1.37, maintaining a bullish near-term bias as price holds above the main Exponential Moving Averages (EMAs), which underpin a broader constructive structure. However, momentum is mixed, with the Relative Strength Index (RSI) hovering around 62 and suggesting sustained but reduced buying interest. The Moving Average Convergence Divergence (MACD) has slipped marginally below the signal line and zero, hinting at some loss of upside conviction rather than a full-fledged reversal.

Immediate support is seen at the $1.35 area, where the 200-day EMA aligns as the first line of defense ahead of the $1.21 region, reinforced by the clustered 50-day and 100-day EMAs. As long as XRP holds above these supports, pullbacks are likely to be treated as corrective within the broader advance, with buyers expected to re-emerge on dips while the next meaningful resistance is left to be defined by future highs beyond the current $1.37 zone.

(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 <a href="https://xpertsstudio.com/strike-enhances-bitcoin-experience-with-new-features/” title=”Strike Enhances Bitcoin Experience with New Features”>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.

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

Source: www.fxstreet.com