Ripple Price Forecast: XRP eyes $140 breakout as ETF inflows return
Ripple (XRP) is edging up above $1.38 at the time of writing on Wednesday, buoyed by improving market sentiment after the United States (US) suspended attacks on Iran amid a two-week ceasefire.
  • XRP recovers above $1.38 from the weekly low of $1.29, supported by growing risk appetite.
  • US-listed XRP ETFs record inflows of $3.32 million amid broadly improving market sentiment.
  • XRP’s upside appears limited by the 50-day EMA despite momentum indicators confirming a neutral-to-bullish outlook.

Ripple (XRP) is edging up above $1.38 at the time of writing on Wednesday, buoyed by improving market sentiment after the United States (US) suspended attacks on Iran amid a two-week ceasefire.

Cryptocurrency prices broadly recovered following developments in the Middle East country, with XRP extending gains from its weekly low of $1.29. The remittance token is poised to rise above the $1.40 pivotal level, supported by growing risk appetite.

XRP gains on fresh ETF uptake

Interest in XRP investment products is gaining traction, as reflected by inflows of $3.32 million into US-listed spot Exchange-Traded Funds (ETFs). Cumulative inflows remain steady at $1.21 billion, with net assets under management at $921.57 million, according to SoSoValue data. If ETFs continue to attract inflows, sentiment surrounding XRP will increase, steadying its recovery potential.

XRP ETF flows | Source: SoSoValue

Retail interest also shows signs of a potential comeback, with futures Open Interest (OI) rising to $2.50 billion on Wednesday, from $2.38 billion the previous day. A steady increase in the OI supports a sustainable uptrend as investors increase their risk exposure.

XRP Futures OI | Source: CoinGlass

Technical outlook: XRP tests recovery strength

XRP is trading above $1.38 as its near-term bias turns cautiously bullish. The Moving Average Convergence Divergence (MACD) indicator has confirmed a buy signal, with the histogram expanding into positive territory on the daily chart. At the same time, the Relative Strength Index (RSI) hovers just above 50, hinting at modestly improving momentum. If this momentum steadies, XRP could extend gains above $1.40 and $1.45 as the next upside objectives.

However, the remittance token remains structurally constrained by the 50-day Exponential Moving Average (EMA) at $1.42. A sustained break above this threshold would be needed to ease near-term pressure at $1.45 and open the way toward the 100-day EMA near $1.58, and the 200-day EMA around $1.84.

XRP/USDT daily chart

On the downside, immediate support is seen at $1.32, guarding last week’s $1.30 congestion band, with further protection at $1.28. A break below the latter would reopen the $1.25 area, leaving XRP vulnerable to a deeper retracement.

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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