XRP Fails to Break $2.35 Resistance Amid Steady ETF Inflows
Ripple’s XRP is currently trading at $2.21 after an underwhelming attempt to push above the $2.35 resistance level. Over the past 24 hours, the cryptocurrency has gained less than 1%, reflecting cautious optimism among traders.
Growing Institutional Interest in XRP ETFs
XRP continues to garner attention from institutional investors, fueled by the launch of four XRP-focused exchange-traded funds (ETFs) in the United States. These include Canary Capital’s XRPC, Bitwise’s XRP, Grayscale’s GXRP, and Franklin Templeton’s XRPZ.
According to data obtained from SoSoValue, these ETFs recorded $35 million in inflows on Tuesday, bringing total cumulative volume to $622 million and net assets to $645 million. This surge in inflow indicates improving market sentiment and increasing institutional positioning for a potential XRP rally in the near to medium term.
Retail Market Outlook and XRP’s Futures Data
Despite the strong inflows in ETFs, retail demand for XRP remains tepid. Futures open interest (OI) has consistently stayed below $4 billion since its decline on November 11. On Wednesday, CoinGlass reported that XRP’s OI averaged $3.96 billion, a drop from $4 billion the previous day. In July, OI reached a peak of $10.94 billion when XRP hit $3.66. However, the value has dropped significantly, with XRP losing nearly 50% of its worth since then.
A recovery in OI above $4 billion could signal renewed retail interest, enabling XRP’s price to surge higher in the short to medium term.
Technical Analysis: XRP’s Current Position
The short-term outlook for XRP suggests a bearish trend due to its failure to move past the critical resistance level of $2.35. Over the weekend, XRP found support at $1.85 and managed to rebound, gaining nearly 15% since then. However, the cryptocurrency still struggles to clear the $2.35 mark, which aligns closely with its 50-day EMA at $2.37.
Key technical indicators suggest mixed momentum. The 4-hour RSI stands at 58, indicating bullish undertones, while the MACD lines are positive, reflecting limited buyer control.
If XRP manages to breach the $2.35 resistance, it could head toward the next major level of $2.68. On the downside, failing to sustain momentum above key levels risks corrections toward the $1.82 mark in the coming days.
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Conclusion
XRP’s ability to breach critical resistance levels will depend on its capacity to attract both institutional and retail interest in the coming weeks. While ETF inflows demonstrate growing confidence from institutional players, retail momentum remains crucial for sustained price recovery. Traders should closely monitor market trends and key technical indicators to make informed decisions.
