Ripple Price Forecast: XRP gains recovery strength as ETF inflows steady
- XRP rises alongside major crypto assets, holding above $1.40 on Wednesday.
- XRP spot ETFs sustain six consecutive days of inflows as assets under management steady at $1 billion.
- Low retail demand could limit XRP’s recovery potential.
Ripple (XRP) is gaining upside momentum, trading above $1.40 at the time of writing on Wednesday. The remittance token is rising in tandem with major crypto assets, including Bitcoin (BTC), which has crossed above the pivotal $70,000 level, and Ethereum (ETH), which is holding above $2,000.
Despite the war in the Middle East, crypto prices have not collapsed. However, volatility remains of great concern amid geopolitical and macroeconomic uncertainty.
XRP ETFs gain on growing institutional demand
Interest in XRP spot Exchange-Traded Funds (ETFs) continues to expand, as reflected by the sixth consecutive day of inflows, totalling $7.5 million on Tuesday. Bitwise and Canary Capital ETFs accounted for all the inflows, totaling roughly $6 million and $1.45 million, respectively.
Meanwhile, cumulative inflows are at $1.25 billion for the second day, with net assets steady around $1 billion in the same period, according to SoSoValue data. Notably, inflows indicate that appetite for risk assets such as XRP is improving despite uncertainty stemming from the war in the Middle East.
The XRP derivatives market aligns with the overall bearish trend, as futures Open Interest (OI) declines to $2.11 billion on Wednesday, from $2.25 billion the previous day.
In contrast, XRP futures OI peaked at $10.94 billion in July and is currently at its lowest level since January 2025. This persistent downtrend suggests that traders have lost confidence in XRP’s ability to sustain an uptrend, which may explain their adamance to open new positions and increase exposure. A steady increase in OI is required to support short-term price rebounds.
On the other hand, Ripple is leveraging recent acquisitions, including Palisade for custody and treasury automation and Rail for virtual accounts and collections, according to a recent internal report.
Ripple’s solutions now enable customers to collect, hold, exchange, and complete payouts in both fiat and stablecoins on a single unified platform.
The blockchain company believes that for global finance to evolve, “fintechs and financial institutions need infrastructure that treats digital assets with the same rigor as traditional finance,” said Monica Long, President at Ripple.
Technical outlook: XRP mild rebound seeks support
XRP has risen to hold above $1.40 from the daily low of $1.35, with the near-term tone staying mildly bearish. The price holds below the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), which continue to slope lower and frame a broad downtrend. Moreover, the SuperTrend indicator remains above spot at $1.61, reinforcing an overall bearish trend despite the recent stabilization over the descending resistance line – now turned immediate support.
Meanwhile, momentum remains fragile rather than capitulative, with the Moving Average Convergence Divergence (MACD) hovering above its signal on the daily chart, while the Relative Strength Index (RSI) at 45 points to a neutral but slightly improving technical picture.
Initial resistance is aligned near $1.43, where the daily high lies, followed by the February 6 hurdle at $1.54. A daily close above the $1.54 supply zone would soften the bearish bias and expose the 50-day EMA at $1.57 as the next upside objective. On the downside, immediate support emerges around $1.33, the weekly low, with further demand at $1.27, which aligns with Saturday's low.
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.
(The technical analysis of this story was written with the help of an AI tool.)
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