XRP holds $1.90 support as institutional and derivatives interest grow
Ripple (XRP) is trading at $1.92 at the time of writing on Wednesday, and consolidating above support at $1.90. Bulls have exhibited relative strength since Monday, driving XRP upward from the weekly open at $1.84.
  • XRP holds $1.90 immediate support, signaling stability ahead of a potential breakout above $2.00.
  • XRP attracts institutional investors as inflows into ETFs exceed $9 million on Tuesday.
  • The XRP derivatives market shows relative strength, with futures Open Interest rising to $3.45 billion.

Ripple (XRP) is trading at $1.92 at the time of writing on Wednesday, and consolidating above support at $1.90. Bulls have exhibited relative strength since Monday, driving XRP upward from the weekly open at $1.84.

Investors are navigating a delicate balance between institutional optimism and macro headwinds, especially with a market consensus that the Federal Reserve (Fed) will keep interest rates unchanged in Wednesday’s monetary policy decision.

XRP steadies as institutional and retail interest revives optimism

Interest in spot XRP Exchange Traded Funds (ETFs) has remained largely stable since their launch, despite price volatility. The ETFs, licensed to operate in the United States (US), recorded approximately $9 million in inflows on Tuesday, bringing cumulative net inflows to $1.25 billion, with the total assets under management (AUM) hovering at $1.38 billion.

XRP ETF flows | Source: SoSoValue

The unwavering institutional demand for XRP spot ETFs stands in stark contrast to broader crypto market weakness, as Bitcoin (BTC) and Ethereum (ETH) ETFs faced significant outflows of approximately $147 million and $64 million, respectively, during the same period.

The derivatives market supports investor optimism for a breakout, as XRP futures Open Interest (OI) increases to $3.45 billion on Wednesday from $3.29 billion the previous day. The uptick in OI reflects renewed retail confidence in XRP’s near-term prospects. However, for XRP to steady its uptrend, traders should continue opening new positions. OI tracks the notional value of outstanding futures contracts.

XRP futures Open Interest | Source: CoinGlass

Technical outlook: XRP bulls seek control

XRP showcases stability above support at $1.90, underpinned by strengthening technical indicators. For instance, the Relative Strength Index (RSI) has ascended to 45 on the daily chart, signalling fading bearish momentum. An increase in the RSI above the midline would steady bullish momentum and boost the chances of XRP rising above the $2.00 hurdle.

A decisive break above the 50-day Exponential Moving Average (EMA) at $2.02 could open the door for a move toward higher resistance levels. The 100-day EMA highlights the supply at $2.15 and the 200-day EMA at $2.28.

XRP/USDT daily chart

Still, the token faces mounting overhead pressure, as the Moving Average Convergence Divergence (MACD) remains in the negative region and below its signal line. Failure to hold current support risks extending losses toward the January lows of $1.81.

Bitcoin, altcoins, stablecoins FAQs

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.

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