Ripple Price Forecast: XRP holds above critical threshold as risk-on sentiment expands
- XRP trades well above pivotal $1.40 level, supported by increasing demand for spot ETFs and derivatives.
- Three XRP ETF operators recorded inflows totaling nearly $12 million on Thursday.
- Renewed retail demand boosts the XRP derivatives market with futures Open Interest rising to $2.71 billion.
Ripple (XRP) is trading at $1.44 at the time of writing on Friday, its upside seemingly capped by its weekly peak around $1.47. Still, the overall tone remains bullish as the remittance token holds above key support levels at $1.40 and $1.30.
XRP buoyant amid renewed retail and institutional demand
The XRP derivatives market is gaining traction as Open Interest (OI), reflecting the notional value of outstanding futures and options contracts, increased to to $2.71 billion on Friday from $2.58 billion the previous day.
On Monday, the OI averaged $2.38 billion, underscoring growing risk appetite and retail capital influx. XRP requires a highly concentrated retail market to sustain short to medium-term gains.
XRP spot Exchange-Traded Funds (ETFs) also uphold a positive outlook, evidenced by the $11.87 million in inflows on Thursday. SoSoValue data shows that US-listed XRP spot ETFs have maintained a bullish streak for five consecutive days, bringing cumulative inflows to $1.26 billion and net assets under management to $1.08 billion.
Technical outlook: XRP rebound takes a breather as support holds
XRP trades at $1.44 while holding above the 50-day Exponential Moving Average (EMA), providing support at $1.41. The overall technical outlook hints at a constructive short-term tone, yet it remains well below the 100-day EMA near $1.55 and the 200-day EMA at $1.82, both of which keep the broader recovery capped.
Meanwhile, momentum remains supportive, with the Relative Strength Index (RSI hovering just below overbought territory near 61 on the daily chart and the Moving Average Convergence Divergence (MACD) line holding above zero with a positive histogram. This suggests that buyers retain control despite supply overhead.
On the topside, XRP's initial resistance lies at the 100-day EMA around $1.55. Reclaiming that moving average as support would open the way toward the more significant 200-day EMA near $1.82. On the downside, immediate trader focus is on the $1.44–$1.45 area around the current price, with the 50-day EMA at $1.41 providing the first notable support. A break below the same area would likely expose a deeper pullback toward the weekly open at $1.32.
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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