Ripple Price Forecast: XRP seeks higher support amid cooling on-chain activity and ETF demand
- XRP holds above the short-term $1.50 support, sustaining a solid bullish structure amid mild ETF inflows.
- The number of active addresses has halved to about 15,000 from a six-month high of 30,000 in September.
- XRP trades broadly sideways while firmly backed by major moving averages and the SuperTrend indicator’s dynamic support.
Ripple (XRP) is trading above $1.50 on Monday, as bulls struggle to sustain recovery. Despite the sideways price action between support at $1.45 and supply at $1.60, XRP remains supported by uptrending major moving averages and key momentum indicators.
XRP uptake slows as on-chain activity fades
Appetite for crypto assets remains elevated with the Fear & Greed Index at 70 in the Greed territory on Monday, up from 65 the day before. Steady risk-on market sentiment suggests investors retain a solid bullish outlook despite the rallies in August and September.
Still, the XRP Ledger (XRPL) continues to face declining user engagement, as reflected in the Active Addresses metric. The number of wallets actively interacting with the protocol by sending or receiving assets stands at roughly 15,000, down 50% from 30,000, the six-month peak reached on September 25.
CryptoQuant data shows the network has normalized following spikes in activity over the last few weeks. It currently holds near the lower end of the recent 90-day range. The latest reading also stands below the recent 30-day average in the17,000-18,000 range, suggesting fewer unique on-chain participants.
Notably, the cumulative XRP account count is rising, but daily active users are falling, showing that address creation and actual usage are diverging.
The blockchain’s reduced network activity, coupled with declining inflows into US-listed spot Exchange-Traded Funds (ETFs), reinforces the broader outlook of diminishing demand for XRP. XRP ETFs recorded nearly $5 million in inflows last week through Friday.
This represents the 12th consecutive week of positive ETF inflows, with cumulative inflows reaching $1.8 billion and total assets under management at $1.7 billion. However, this persistent capital inflow has yet to translate into a sustained long-term bullish trend for XRP.
Meanwhile, XRP will likely continue to trade sideways between the lower range limit at $1.45 and the upper range limit at$1.60, given a steady derivatives market. The perpetual futures Open Interest (OI) holds at 2.26 billion XRP on Monday, up only marginally from 2.32 billion XRP the previous day. A sustained uptrend would provide the required tailwind to support an extended breakout above $1.60.
Technical Analysis: XRP holds higher support
XRP trades at $1.51 as headwinds trim accrued gains. Despite the minor pullback, the token holds a bullish near-term bias as price extends well above the 50-day Exponential Moving Average (EMA) at $1.40 and the 200-day EMA at $1.38, reinforcing a supportive trend backdrop.
The 100-day EMA at $1.33 and the SuperTrend line at $1.30 sit further below, outlining a layered demand zone beneath the market. Momentum is mixed, with the Relative Strength Index (RSI) at 58 suggesting constructive, but not overbought, conditions, while the Moving Average Convergence Divergence (MACD) indicator turns slightly negative below zero, hinting at waning upside pressure after the recent advance.
Immediate support lies at the 50-day EMA near $1.40, ahead of the 200-day EMA at $1.38, which should act as a secondary floor if a deeper pullback unfolds. Below these, the 100-day EMA at $1.33 and the SuperTrend level at $1.30 define a broader structural demand band that should underpin the larger bullish trend if tested.
With no clear overhead technical levels on the daily chart, bulls would retain control as long as XRP holds above the $1.40-$1.38 EMA cluster, while further weakness through that zone would signal a transition towards a more neutral tone.
(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.
추천 기사
