Ripple Price Forecast: XRP holds EMA support as ETF demand provides a tailwind for recovery
- XRP ticks up as bulls defend the 200-day EMA support at $1.35.
- US-listed XRP ETFs record nine consecutive days of inflows, reinforcing steady institutional interest.
- XRP upholds a constructive bullish bias but risks extending the correction if momentum indicators deteriorate.
Ripple (XRP) rises above a short-term key support on Monday and trades around $1.37 at the time of writing. The remittance token upholds a broad bullish outlook, supported by steady institutional interest. Still, traders should temper expectations as momentum indicators cool following the recent rally that tagged highs of $1.70 on August 22.
XRP ETF demand backs bullish outlook
Institutional interest in XRP has been persistent for nearly two weeks, aligning with improved market sentiment. According to the Fear & Greed Index, sentiment stands at 62 on Monday, down only slightly from 69 the day before. Looking back, market sentiment averaged 27 in July, underscoring growing appetite for XRP-related investment products.
XRP spot Exchange-Traded Funds (ETFs) extended the bullish streak, marking the ninth consecutive day with $26 million recorded on Friday. This brought cumulative inflows to $1.66 billion while net assets under management average $1.44 billion. If sustained, ETF inflows could absorb selling pressure in the open market, supporting stability and potential price increases.
Technical analysis: XRP clings to key support
XRP trades at $1.37, extending its advance above the key Exponential Moving Averages (EMAs) and maintaining a bullish near-term bias. The spot price holds firmly over the 200-day EMA at $1.35, while the 100-day and 50-day EMAs at $1.21 sit well below, reinforcing a supportive structure after the recent breakout.
Momentum remains constructive, with the Moving Average Convergence Divergence (MACD) histogram positive and the Relative Strength Index (RSI) hovering around 62, hinting that buyers still control the tape, though conditions are no longer overbought.
On the downside, immediate support is at $1.35, where the 200-day EMA aligns as the first structural floor, followed by deeper demand around $1.21, marked by the 100-day and 50-day EMAs. As long as the pair holds above these moving averages, the technical tone should remain constructive, with any pullback toward the 200-day EMA likely to be viewed as a dip within a broader bullish phase rather than a trend reversal.
(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.
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