XRP’s rally stagnates despite rising ETF flows. Check the forecast
Key receivers
After losing 3% of its value in the last 24 hours, XRP lost the fourth place in the market to BNB.
Despite growing ETF interest, the coin is struggling to overcome the $2.2 resistance level.
XRP lost the fourth place to BNB
Native to the Ripple ecosystem, XRP has lost more than 2% of its value in the past 24 hours and is currently trading at $2.11 per coin. The bearish performance comes despite open interest (OI) and institutional inflows into XRP ETFs.
As he says CoinGlassXRP's OI increased to $4.09 billion on Thursday, from $3.93 on Tuesday. The increase, although small, indicates that investors are beginning to lean more towards the risk.
If OI continues to rise, it could see XRP price rally higher in the near term and target the nearest resistance level. Still, OI remained below the annual high of $4.55 billion set on Jan. 6.
Additionally, demand for XRP spot Exchange Traded Funds (ETFs) continues to build. According to SoSoValue, the XRP ETF earned nearly $11 million on Wednesday. Since its launch in November, XRP ETFs have recorded only one outflow, on January 7th for a total of nearly $41 million. Total revenue now stands at $1.25 billion on net assets of $1.54 billion.
Will XRP continue to rise soon?
The XRP/USD 4-hour chart is weak and bearish as Ripple has underperformed over the past few days. The coin is still trading above the key support provided by the 50-day Exponential Moving Average (EMA) at $2.08.
The Relative Strength Index (RSI) on the 4-hour chart confirms a modest decline to 53, confirming the downside pressure. If RSI continues to decline, XRP could retest the $1.90 support level in the near term.
However, the Moving Average Convergence Divergence (MACD) indicator on the same chart holds above the signal line, allowing investors to bet on the XRP price going higher.
If the daily candle closes above the 100-day EMA at $2.21, XRP may extend its rally to the 200-day EMA ($2.33).
