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Ripple (XRP) upholds a strong bullish outlook, while consolidating near $1.50 on Tuesday. A 72% rally last week pushed the token to $1.70 before it pulled back to seek support amid possible profit-taking and an overstretched market trend.
If bulls maintain momentum above $1.50 and establish a solid demand zone, the odds of an extended breakout toward $1.70 and $2.00 increase significantly.
XRP ETFs and derivatives draw investor interest
The bullish outlook for XRP stems from improved crypto market sentiment, supported by the United States (US) Treasury’s long-term bond buyback program and renewed momentum from the Securities and Exchange Commission (SEC) to develop clearer industry regulations.
At 74, crypto market sentiment is in the Greed territory, as reflected in the Fear & Greed Index on Tuesday. This shows a marginal improvement from 73 the day before but a notable increase from 41 in the Fear territory last week.
US-listed XRP spot ETFs continue to mirror positive market sentiment, with $14 million in inflows on Monday. Although this is a markdown from last Friday’s $18 million, it extends the five-day bullish streak. Cumulative inflows stand at $1.57 billion, up from $1.55 billion over the same period. At the same time, assets under management now stand at $1.44 billion.
Retail demand is also gradually rising, as futures Open Interest (OI) holds at 2.5 billion XRP on Tuesday, up from 2.47 billion the day before. Expanding OI reinforces the bullish outlook, as more traders take on risk. However, higher OI calls for caution and tempered expectations, as a sudden correction could follow if resistance at $1.50 holds.
Technical analysis: XRP upholds constructive momentum
XRP holds well above the key Exponential Moving Averages (EMAs), reinforcing a strong bullish near-term bias as the price extends its breakout. The Relative Strength Index (RSI) at 81, however, signals overbought conditions, while the Moving Average Convergence Divergence (MACD) remains firmly positive, suggesting upside momentum is strong but increasingly stretched.
Immediate support lies at the recent breakout region around the 200-day EMA at $1.35, where a pullback could find initial demand before deeper dips test the 100-day EMA at $1.19 and the 50-day EMA at $1.16. As long as XRP holds above these stacked EMA supports, the broader uptrend is likely to stay intact. Still, overbought momentum readings warn that corrective pressures or consolidation phases may emerge before the next sustained leg higher.
(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.
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