XRP gains momentum amid growing derivatives demand

Institutional and retail interest steadies XRP price

Investors seeking exposure to XRP through Exchange-Traded Funds (ETFs) continue to do so despite the war-driven uncertainty in the Middle East. Over the past seven days, US-listed spot XRP ETFs have attracted inflows, with approximately $4 million recorded on Wednesday. Canary Capital’s XRPC ETF accounted for all the inflows, as activity remained muted across the rest of the products. Cumulative inflows ticked up, reaching $1.26 billion on Wednesday, up from $1.25 billion the previous day. Total assets under management hold above $1 billion, according to SoSoValue data.

Retail investors have also shown signs of returning to the market, as reflected in futures Open Interest (OI), which has risen to $2.35 billion on Thursday from $2.11 billion the previous day. Although the OI holds significantly below the record $10.94 billion reached in July, the mild increase could help shape XRP’s short-term outlook if it holds.

XRP Futures Open Interest | Source: CoinGlass

Technical outlook: XRP shows early signs of strength

XRP hovers above $1.44 as its short-term outlook turns mildly bullish, supported by a gradually increasing Relative Strength Index (RSI) at 49 on the daily chart. The Moving Average Convergence Divergence (MACD) indicator remains above its signal line on the same chart, with green histogram bars expanding. If this short-term bullish case holds, XRP could drift higher toward the 50-day Exponential Moving Average (EMA) at $1.57.

Meanwhile, a descending resistance trend line from $2.40 has repeatedly capped rebounds and still overhangs the price despite a test of the immediate resistance around $1.44. A daily close above this supply zone is needed to open the way to the 50-day EMA at $1.57 and, later, the 100-day EMA at $1.78. On the downside, immediate support lies at the daily low at $1.43. A loss of this level would expose the demand zone at $1.35, aligning with Wednesday's low.

Cryptocurrency prices FAQs

How do new token launches or listings affect cryptocurrency prices?

Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.

How do hacks affect cryptocurrency prices?

A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.

How do macroeconomic releases and events affect cryptocurrency prices?

Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.

How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?

Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.

(The technical analysis of this story was written with the help of an AI tool.)

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