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Ripple (XRP) rises on Friday to trade above $1.40 as bulls aim for a continuation of the rally above $1.50. The remittance token is up by more than 12% on the day and over 40% since Monday, reinforcing the bullish outlook.
Meanwhile, the path of least resistance remains upward, supported by a very strong technical structure and capital inflows through spot Exchange-Traded Funds (ETFs) and derivatives.
Market sentiment improves as XRP capital inflows increase
Market sentiment remains robust, with the Fear & Greed Index climbing to 72 from 62 in just 24 hours. This uptick signals a rising risk appetite that continues to ground the current rally.
US-listed XRP spot ETFs reflected the growth in risk-on sentiment, with inflows totaling $13.4 million on Thursday, up from $2.35 million the day before. So far this week, inflows total $21.4 million, bringing cumulative volume to $1.53 billion and net assets under management to $1.17 billion. If sustained, the capital increase could continue to lift XRP’s outlook.
Retail demand, similarly, increased on Friday, with perpetual futures Open Interest (OI) averaging 2.5 billion XRP, from 2.42 billion XRP. CoinGlass data shows that OI peaked at 2.78 billion XRP on August 15 but corrected as traders assessed the broader outlook amid rising Middle East tensions and macro uncertainty. If the recovery continues, XRP could build strong momentum toward gains above $1.50.
Meanwhile, short liquidations remain high, with investors losing over $15 million so far on Friday. Approximately $25 million in short positions were wiped out on Thursday as XRP advanced. Long liquidations are also rising but holding at $6 million at the time of writing, compared to nearly $16 million the day before.
Technical analysis: XRP eyes short-term breakout toward $1.50
XRP trades at $1.42, extending a strong bullish phase after reclaiming all major Exponential Moving Averages (EMAs). The SuperTrendline near $1.14 reinforces this constructive tone, while the downward resistance trendline, now broken with a key level near $0.99, has turned into a deeper structural floor.
Momentum is stretched, as the Relative Strength Index (RSI) hovers in overbought territory at 84 and the Moving Average Convergence Divergence (MACD) remains bullish with a positive reading, hinting at strong but potentially overextended buying pressure.
Initial support emerges at the 200-day EMA around $1.34, followed by the 100-day EMA at $1.16 and the SuperTrend level near $1.14, which define a broad demand zone on any corrective pullback. Deeper support lies at the 50-day EMA near $1.10, with a more distant structural base around the former trendline break level at $0.99. With no nearby technical resistance levels on the daily chart, the pair would likely need a pause or consolidation to ease overbought conditions before attempting further upside extension.
(The technical analysis of this story was written with the help of an AI tool.Know more.)
Open Interest, funding rate FAQs
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
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