XRP rises above $2.00 as bulls push to regain control on Monday.
XRP ETFs recorded nearly $180 million in inflows last week, as institutional investors turn to altcoin products.
XRP derivatives market shows signs of stability, with futures Open Interest staying between $3 billion and $4 billion.
Ripple (XRP) is trading at around $2.06 at the time of writing on Monday, as buyers push to regain control despite a generally bearish cryptocurrency market.
The cross-border remittance token opened Monday’s trading at $2.05, building on the increase from $1.95, which marked Sunday’s low. Steady demand for XRP Exchange Traded Funds (ETFs) supports positive market sentiment around the token, increasing the odds of an uptrend forming above $2.00.
XRP eyes breakout as ETF inflows extend
US-listed XRP ETFs had a bullish debut, recording nearly $180 billion in inflows last week and $243 million the week before. SoSoValue data shows the crypto products accessed directly via stock exchanges, with a cumulative total net inflow volume of approximately $423 million and net assets of $384 million on November 21.
Canary Capital’s XRPC ETF posted approximately $619,000 in net inflow on Friday, while Bitwise’s XRP ETF was the best-performing with $11 million.
Steady ETF inflows reinforce positive sentiment around XRP, which could bolster risk appetite and increase the chances of a steady recovery above $2.00 in the short to medium term.
XRP flaunts a weak but stable derivatives market, with the futures Open Interest (OI) averaging between $3 billion and $4 billion over the past two weeks.
CoinGlass data shows OI, which tracks the notional value of outstanding futures contracts, averaging $3.61 billion on Monday, up from $3.28 billion on the previous day. OI must steadily rise to support risk-on sentiment, as investors increase their risk exposure.
Chart of the day: XRP holds key support
XRP is trading at around $2.06 at the time of writing on Monday, supported by an uptrending Relative Strength Index (RSI) on the daily chart. The RSI at 39 and rising indicates that bullish momentum is increasing, as traders position themselves above the critical $2.00 level.
A daily close above $2.00 would back bullish sentiment and increase the chances of an extended uptrend above resistance at $2.24, which was tested on Wednesday. Further action above the same hurdle could pave the way for gains targeting the 50-day Exponential Moving Average (EMA) at $2.38 and the 200-day EMA at $2.52.
Still, the Moving Average Convergence Divergence (MACD) indicator has maintained a sell signal since November 16, encouraging investors to reduce their risk exposure.
The red histogram bars below the zero line indicate that bearish momentum remains apparent. If short-term support at $2.00 gives way, the path of least resistance will remain downward, as sellers target a retest of support at $1.82.
Traders will watch for a buy signal, which occurs when the blue MACD line crosses above the red signal line, indicating a bullish shift.
