• Bitcoin holds above the 100-day EMA after correcting from the previous day’s high amid surging ETF inflows.
• Ethereum posts a minor correction on Thursday after a notable bullish move above $3,400, reflecting potential profit-taking.
• XRP declines for the second consecutive day, weighed down by a weakening technical structure.

Bitcoin (BTC) is trading lower but holds above $96,000 at the time of writing on Thursday, as the broader crypto market pulls back from recent highs driven by investors' optimism and rising institutional interest.

Ethereum (ETH) and Ripple (XRP) are also edging lower, with the former trading above $3,300, while XRP tests support at $2.10. Looking ahead, profit-taking could take centre stage, but fresh entries from traders could trigger the next bullish leg.

Crypto ETF inflows surge, igniting optimism for a BTC, ETH and XRP rally

Bitcoin spot Exchange Traded Funds (ETFs) extended their inflow streak for the third consecutive day, drawing approximately $844 million on Wednesday. Interest in spot BTC ETFs listed in the United States (US) has increased significantly this week, with inflows totaling 117 million on Monday and $754 million on Tuesday.

The cumulative inflow stands at $58.12 billion and net assets at $128 billion, indicating that investors' confidence is returning after weeks of mild inflows and deteriorating sentiment.

Ethereum spot ETFs also recorded a surge in inflows, with investors depositing $175 million on Wednesday, up from approximately $130 million on Tuesday and $5 million on Monday. The uptake of ETFs pushed cumulative inflows to $12.74 billion and net assets to $20.84 billion, according to SoSoValue data. If the interest steadies and market sentiment continues to improve, Ethereum would be poised for the next leg up.

Meanwhile, XRP spot ETFs recorded a slight decrease in inflows, falling to nearly $11 million on Wednesday from $13 million the previous day. Overall demand for XRP ETFs remains steady, with only one day of outflows – roughly $41 million on January 7 – posted since launch. Cumulative inflows stand at $1.26 billion, with net assets totaling $1.56 billion.

Chart of the day: What’s next as Bitcoin corrects?

Bitcoin is trading above $96,000 at the time of writing on Thursday, after correcting from the previous day’s high of $97,924. The Relative Strength Index (RSI) has retraced to 68 on the daily chart after approaching overbought territory, suggesting that bullish momentum is gradually fading.

The 100-day Exponential Moving Average (EMA) at $96,032 is poised to absorb potential selling from profit-taking. Closing below this level may accelerate losses to Wednesday’s low of $94,559. An extended sell-off drives BTC toward the 50-day EMA at $92,111.

On the flip side, the 200-day EMA caps the upside at $99,570. A decisive break above this level would be needed to validate a potential continuation of the uptrend.

Altcoins technical outlook: Ethereum, XRP hold above key support

Ethereum is trading above $3,300 at the time of writing on Thursday, with the 100-day EMA upholding a short-term support at $3,290. The RSI has stabilized at 66 on the daily chart, signaling consolidation before the next move.

Looking ahead, bulls are battling to keep ETH above the 200-day EMA at $3,340, which would help reinforce the uptrend.

The Moving Average Convergence Divergence (MACD) indicator on the same chart remains above the signal line, a position that may prompt investors to increase their risk exposure.

Key milestones that should be achieved to confirm Ethereum’s bullish outlook are a break above resistance at $3,447, tested on December 10 and $3,658, tested on November 10.

However, if profit-taking overshadows demand and ETH breaks below the 100-day EMA at $3,290, the correction may extend by almost 9% to $3,000.

As for XRP, sellers are largely in control, pushing the price downward to $2.11 at the time of writing on Thursday. The RSI has fallen to 54 on the daily chart, indicating that bullish momentum is narrowing.

An extended sell-off could weaken the 50-day EMA support at $2.08 and pave the way for losses toward the January 1 low of $1.82.

However, the MACD indicator remains above the red signal line on the same time frame, suggesting traders may seek exposure, adding to the tailwind. XRP should breach the 100-day EMA at $2.21 and the descending trend line from the record high of $3.66 to confirm a strong bullish turnaround.