XRP, Fueled by Institutional Funds, Surpasses $1.45, Will It Enter a Full-Fledged Upward Rally?

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As geopolitical tensions in the Middle East eased with progress in peace talks between the United States and Iran, investment sentiment for risk assets revived. This led to a surge of large capital into spot Exchange Traded Funds (ETFs), allowing XRP (Ripple) to instantly reclaim the $1.45 mark.

According to the investment media FXStreet on May 6 (local time), a favorable breeze is blowing across the virtual asset market since the U.S. temporarily suspended Project Freedom due to significant progress towards a final peace agreement with Iran. As of Wednesday, the crypto Fear & Greed Index slightly dropped to 46 from 50 the previous day, but the overall market sentiment remains risk-on, solidly supporting XRP's bullish momentum.

The inflow of institutional investors' funds is a strong driving force behind the uptrend. According to SoSoValue data, the inflow into XRP spot ETFs on Tuesday jumped from $3.87 million the previous day to $11.28 million. Consequently, the cumulative inflow reached $1.31 billion, and the net asset under management stands at $1.09 billion. If institutions continue to increase their risk exposure in line with improving market sentiment, the possibility of an additional rally is very high.

The derivatives market is also showing a gradual recovery. As of Wednesday, XRP futures open interest increased from $2.54 billion the previous day to $2.59 billion. However, this level of individual investor participation is still insufficient compared to the peak open interest of $10.94 billion in July when the price hit an all-time high of $3.66. The media's analysis suggests that for a solid long-term bullish outlook, an explosive increase in open interest must accompany price appreciation.

Technical indicators suggest strong buyer control, supporting a short-term upward bias. Currently trading at $1.45, XRP maintains a stable trend above the 50-day exponential moving average (EMA) of $1.41 and the Supertrend support line of $1.32, effectively absorbing selling pressure. The Relative Strength Index (RSI) on the daily chart hovers around 61, and the Moving Average Convergence Divergence (MACD) histogram has re-entered the positive territory, sending a positive buy signal.

Experts pointed to the 100-day EMA at $1.51 as the primary resistance level to overcome for a sustained upward trend, diagnosing that if this is breached, resistance from the downtrend line at $1.57 awaits. To solidify a broader bull market, reclaiming the 200-day EMA at $1.74 is essential. Conversely, if downward pressure intensifies, $1.41 and $1.32 will act as key support levels, and a daily close below this range risks entering a correctional phase, they added.

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