Ripple Price Forecast: XRP tops $1.45 as retail and institutional demand builds
- XRP reclaims $1.45 as support, rising alongside major crypto assets on Wednesday.
- XRP sees a steady growth in risk-on sentiment as capital flows into spot ETFs and derivatives.
- XRP's technical indicators suggest bullish potential, with the RSI rising sharply above the midline and the MACD showing a buy signal.
Ripple (XRP) exhibits increasing bullish strength, rising above $1.45 at the time of writing on Wednesday, building on growing risk appetite after the United States (US) paused “Project Freedom,” citing great progress toward a final peace agreement with Iran.
Sentiment in the crypto market remains relatively upbeat, with the Fear & Greed Index holding at 46 on Wednesday, down slightly from 50 the previous day. A distinct risk-on environment continues to underpin XRP’s bullish momentum, increasing the probability of sustained price increases.
XRP regains investor confidence amid capital inflows
Demand for XRP spot Exchange-Traded Funds (ETFs) gained momentum, with inflows totaling $11.28 million on Tuesday, up from $3.87 million the previous day. Cumulative inflows now stand at $1.31 billion, with net assets under management averaging $1.09 billion, according to SoSoValue.
Should institutional investors continue to ramp up risk exposure in line with strengthening market sentiment, XRP is well positioned to rally further, building on its recent recovery above the $1.45 support level.
The derivatives market also shows increasing strength, albeit gradually, with the futures Open Interest (OI) rising to $2.59 billion on Wednesday, down from $2.54 billion the day before.
Despite the mild increase, the current retail demand pales in comparison to the OI peak of $10.94 billion reached in July, around the time XRP hit a new record high of $3.66. Hence, OI should increase alongside the price to ascertain a medium- to long-term bullish outlook.
Technical outlook: XRP ticks up as selling cools
XRP trades at $1.45, maintaining a constructive near-term bullish bias as price trades above the 50-day Exponential Moving Average (EMA) at $1.41 and the SuperTrend support at $1.32, suggesting dips are being absorbed.
Momentum aligns with this constructive tone, with the Relative Strength Index (RSI) hovering near 61 on the daily chart and the Moving Average Convergence Divergence (MACD) histogram back in positive territory, hinting that buyers retain control within the broader downtrend.
On the topside, initial resistance is seen at the 100-day EMA around $1.51, followed by the descending trendline resistance near $1.57. The 200-day EMA at $1.74 marks a more distant barrier that would need to be reclaimed to strengthen the broader bullish case.
On the downside, immediate support is defined by the 50-day EMA at $1.41, with the SuperTrend line at $1.32 providing a deeper cushion. A daily close below these levels would weaken the current bullish structure and expose a more corrective phase.
(The technical analysis of this story was written with the help of an AI tool.)
Open Interest, funding rate FAQs
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
บทความแนะนำ
