XRP Price Update: Steady Support Amid Market Weakness
XRP is currently trading at approximately $2.06 as of Monday. Buyers are trying to regain some control, even amid a generally weak cryptocurrency market.
The cross-border remittance token started Monday’s trading at $2.05, bouncing back from a low of $1.95 seen on Sunday. There seems to be steady interest in the XRP exchange-traded fund (ETF), which is helping lift market sentiment around the token and may bolster an upward trend above the $2.00 mark.
XRP’s ETF Inflows Spark Interest
The XRP ETF listed in the U.S. had a remarkable introduction, seeing inflows nearing $180 billion last week and about $243 million the week before. Data from SoSoValue indicates that crypto products accessed through stock exchanges now have aggregate net inflows of around $423 million, with net assets standing at $384 million as of November 21.
On Friday, Canary Capital’s XRPC ETF reported net inflows of about $619,000, while Bitwise’s XRP ETF led the pack with $11 million inflow.
The consistent inflows into the ETF might enhance positive sentiment around XRP, potentially encouraging a higher risk appetite among investors and increasing the chances for a recovery above the $2.00 level in the coming days or weeks.
XRP has shown a somewhat weak but stable derivatives market — the open interest (OI) for futures has been averaging between $3 billion and $4 billion for the last couple of weeks.
As of Monday, the average OI was about $3.61 billion, up from $3.28 billion the previous day, according to CoinGlass. If investors continue to increase their exposure to risk, we might see a steady rise in OI, which would support a more risk-on sentiment.
Chart Analysis: XRP Maintains Strong Support
Trading at around $2.06 on Monday, XRP benefits from a rising trend in the Relative Strength Index (RSI) observed on the daily chart. The RSI at 39 suggests that bullish momentum is building as traders position themselves above the critical $2.00 level.
A daily close above $2.00 would confirm this bullish outlook and could facilitate a continuation of the upward trend past the $2.24 resistance noted on Wednesday. Should prices climb further, a rally could aim for the 50-day exponential moving average (EMA) around $2.38 and the 200-day EMA at $2.52.
Nevertheless, the Moving Average Convergence Divergence (MACD) indicator has been signaling a sell trend since November 16, which might be leading investors to trim their risk exposure.
The red histogram below the zero line indicates some persistent bearish momentum. If the critical support at $2.00 is breached, the trend might lean toward the downside, pushing sellers to retest the support around $1.82.
Traders are on the lookout for buy signals, especially when the blue MACD line crosses above the red signal line, indicating a shift towards positivity.
