XRP, the native coin of the Ripple blockchain, is looking to establish a strong support around the $1.40 level after dropping to $1.1 during last week’s market flush.
Currently, XRP has been consolidating above $1.4 over the past few days after its recovery attempt stalled at $1.54 on Friday.
Retail interest in XPR has stabilised since the start of the week, while institutional investors continue to lean into risk.
ETF inflow and retail interest could push XRP higher
XRP is up by 1% in the last 24 hours, making it the second-best performer among the top 10 cryptocurrencies by market cap, behind Bitcoin Cash.
The positive performance comes as inflows into US-listed XRP spot ETFs totalled $6.3 million on Monday, bringing the cumulative inflow to $1.23 billion, and net assets under management to $1.04 billion.
The inflow suggests that institutional investors are increasing their exposure to XRP despite the current market conditions.
Last week, XRP ETFs recorded an accumulated $39 million in total inflows through Friday.
However, that didn’t stop XRP from dumping as it was affected by the broader crypto market’s selloff.
In addition to that, the XRP derivatives market remains weak but has stabilised since the start of the week.
Official data shows that XRP’s futures Open Interest (OI) has stabilised at $2.49 billion on Tuesday, up from the $2.47 billion recorded on Monday.
The stability in derivatives data suggests that traders are holding onto their open positions, which could improve XRP’s price in the near term.
Furthermore, traders are facing fewer liquidations of leveraged positions, as only $1.51 million in long positions and approximately $242,000 in shorts have been wiped out today.
XRP could rally higher amid improved market sentiment
The XRP/USD 4-hour chart remains extremely bearish as XRP retested the $1.1 support level last week.
At press time, XRP is trading at $1.41, below the 50-day Exponential Moving Average (EMA) at $1.81, the 100-day EMA at $2.00, and the 200-day EMA at $2.18. The declining moving averages indicate the overall bearish trend of the XRP market.
The Moving Average Convergence Divergence (MACD) lines are converging, indicating that the buyers are slowly regaining control of the market.
The Relative Strength Index (RSI) at 45 on the 4-hour chart is approaching the neutral 50, adding further confluence to the bullish bias.
If XRP sustains its recovery toward Friday’s high at $1.54, it could rally higher towards the 50-day EMA at $1.81 in the near term.
An extended bullish scenario could see XRP hit the $2.15 resistance level.
However, if the bearish trend persists, XRP could retest the $1.25 support level, with Friday’s low of $1.12 also on the cards.
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