XRP recovers as ETF inflows support gains

Ripple (XRP) ticks higher, trading at $1.42 on Wednesday while building on a recently confirmed support range between $1.30 and $1.35. The token also sits above major moving averages, reinforcing the bullish outlook. However, upside could remain capped unless the psychological barriers at $1.50 and $1.70 are cleared, paving the way for an extended recovery above $2.00.

XRP capital inflows return

Demand for digital assets has remained relatively elevated since the August rally, aligning with the crypto Fear & Greed Index, which holds at 66 in the Greed territory on Wednesday, down only slightly from 69 the previous day. This setup shows steady risk-on sentiment, which is required to sustain demand and improve the XRP breakout prospects.

XRP spot Exchange-Traded Funds (ETFs) saw the return of inflows amounting to $1.55 billion on Tuesday following a brief hiatus. This brought cumulative inflows to $1.68 billion, with net assets under management holding at $1 0.51 billion. An increase in ETF inflows could help boost the token’s short-term outlook, cushioning the price from headwinds caused by macroeconomic uncertainty and growing geopolitical tensions in the Middle East.

Meanwhile, retail demand stands relatively steady with perpetual futures Open Interest (OI) at 2.23 billion XRP on Wednesday, down only marginally from 2.24 billion XRP the previous day. Despite the stability, OI remains well below August’s peak of 2.78 billion. A steady recovery is required to support XRP’s uptrend in the short to medium term.

Technical analysis: XRP consolidates as bulls return

XRP is trading above $1.42, holding a bullish near‑term bias as price stands well above the 50‑day and 100‑day Exponential Moving Averages (EMAs) at $1.27 and $1.24, respectively. This configuration suggests the broader upswing remains intact despite a recent pullback from the highs, while the Relative Strength Index (RSI) around 61 hints at still‑constructive, though moderating, upside momentum.

Meanwhile, the negative Moving Average Convergence Divergence (MACD) reading, however, warns that bullish pressure is not as strong as it was during the earlier spike.

On the downside, initial support is seen at the 50‑day EMA near $1.27, with the 100‑day EMA around $1.24 providing a secondary cushion if selling deepens. On the topside, the 200‑day EMA at $1.36 is the next important resistance to watch. A sustained break above this longer‑term average would likely reopen the path toward the recent highs, whereas failure to reclaim it could keep XRP consolidating or correcting back toward the EMA support band.

(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