Ripple Price Forecast: Capital inflows lift XRP’s outlook as bulls target $1.50
- XRP accelerates breakout, trading above $1.40 on Friday, up over 12%.
- Investors return, as spot ETFs see $13 million in inflows while perpetual futures Open Interest climbs to 2.5 billion XRP.
- XRP flips bullish with major moving averages providing support and the RSI showing overstretched momentum.
Ripple (XRP) edges higher on Friday to trade above $1.40 as bulls aim for a continuation of the rally above $1.50. The remittance token is up by more than 12% on the day and over 40% since Monday, reinforcing the bullish outlook.
Meanwhile, the path of least resistance remains upward, supported by a very strong technical structure and capital inflows through spot Exchange-Traded Funds (ETFs) and derivatives.
Market sentiment improves as XRP capital inflows increase
Market sentiment remains robust, with the Fear & Greed Index climbing to 72 from 62 in just 24 hours. This uptick signals a rising risk appetite that continues to ground the current rally.
US-listed XRP spot ETFs reflected the growth in risk-on sentiment, with inflows totaling $13.4 million on Thursday, up from $2.35 million the day before. So far this week, inflows total $21.4 million, bringing cumulative volume to $1.53 billion and net assets under management to $1.17 billion. If sustained, the capital increase could continue to lift XRP’s outlook.
Retail demand, similarly, increased on Friday, with perpetual futures Open Interest (OI) averaging 2.5 billion XRP, from 2.42 billion XRP. CoinGlass data shows that OI peaked at 2.78 billion XRP on August 15 but corrected as traders assessed the broader outlook amid rising Middle East tensions and macro uncertainty. If the recovery continues, XRP could build strong momentum toward gains above $1.50.
Meanwhile, short liquidations remain high, with investors losing over $15 million so far on Friday. Approximately $25 million in short positions were wiped out on Thursday as XRP advanced. Long liquidations are also rising but holding at $6 million at the time of writing, compared to nearly $16 million the day before.
Technical analysis: XRP eyes short-term breakout toward $1.50
XRP trades at $1.42, extending a strong bullish phase after reclaiming all major Exponential Moving Averages (EMAs). The SuperTrendline near $1.14 reinforces this constructive tone, while the downward resistance trendline, now broken with a key level near $0.99, has turned into a deeper structural floor.
Momentum is stretched, as the Relative Strength Index (RSI) hovers in overbought territory at 84 and the Moving Average Convergence Divergence (MACD) remains bullish with a positive reading, hinting at strong but potentially overextended buying pressure.
Initial support emerges at the 200-day EMA around $1.34, followed by the 100-day EMA at $1.16 and the SuperTrend level near $1.14, which define a broad demand zone on any corrective pullback. Deeper support lies at the 50-day EMA near $1.10, with a more distant structural base around the former trendline break level at $0.99. With no nearby technical resistance levels on the daily chart, the pair would likely need a pause or consolidation to ease overbought conditions before attempting further upside extension.
(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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