XRP managed to retain its support level around $1.35, with it trading at approximately $1.37 on Wednesday, May 21. This stability emerged after XRP’s failed attempt to break through the $1.50 resistance level in mid-May. The decline is primarily attributed to stronger-than-anticipated US inflation figures and ongoing geopolitical tensions in the Middle East.
What Drives the Increased Interest in XRP ETFs?
The market interest in exchange-traded funds (ETFs) that track XRP has seen a significant upswing. Four consecutive trading sessions saw net inflows, with Tuesday alone witnessing $1.48 million — almost double the $750,000 recorded on Monday. Cumulatively, the inflows now total $1.39 billion, while average assets managed across these funds amount to $1.12 billion.
What Are the Implications for XRP Futures?
Open interest in futures tied to XRP has increased, reaching $2.93 billion by Wednesday. This rise indicates traders anticipate that XRP might edge towards the $1.40 mark shortly.
Analyzing XRP from a technical standpoint, it currently trades below vital exponential moving averages: the 50-day ($1.41), 100-day ($1.48), and 200-day ($1.69) EMAs, highlighting prevailing short-term selling pressures. The daily chart showcases a Relative Strength Index (RSI) in the 40s, and the MACD remains negative, painting a picture of ongoing weak momentum.
ChartNerd, noted for his insights on XRP, pointed out, “Every failed resistance attempt increases the risk of a downward move.”
The $1.3940 resistance is crucial in the short term. A decisive close above this could see targets at $1.42 and $1.47. Failure to surpass this level might push XRP towards the supports at $1.3620 and $1.3550. A break below this could see prices retrace to $1.34 or even $1.32. Conversely, sustaining above $1.3940 can lead XRP to challenge resistances at $1.50 and $1.52.
Market participants are keenly awaiting the release of the US Federal Reserve’s April meeting minutes. These minutes are expected to provide insights into potential interest rate changes, which have become increasingly significant following the latest inflation data.
Despite recent volatility, the stabilization of XRP’s price around $1.37, combined with robust ETF flows and increased futures positions, underscores a persistent investor interest in the asset.
