"Clear Technical Buy Signal" XRP's Upward Trajectory Outlook Driven by Risk-On Sentiment

▲ XRP (XRP)/AI Generated Image ©

As the dense clouds of war in the Middle East dissipate and risk asset sentiment rapidly revives, XRP (XRP, Ripple) reclaimed the $1.45 mark during intraday trading, signaling the start of a strong upward rally. With massive capital aggressively flowing into spot Exchange Traded Funds (ETFs) and derivatives markets, clear technical bullish signals are emerging, fueling explosive expectations for further gains.

According to investment media FXStreet on May 6 (local time), a strong tailwind is blowing across the entire virtual asset market after the US temporarily suspended Project Freedom, citing significant progress in 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 strongly risk-on, firmly supporting XRP's upward momentum.

The recovery of investor confidence is directly evidenced by massive capital inflows. According to SoSoValue data, inflows into XRP spot ETFs on Tuesday surged from $3.87 million the previous day to $11.28 million. Consequently, cumulative inflows have reached $1.31 billion, with net assets under management recorded at $1.09 billion. If institutional investors continue to increase their risk exposure in line with improving market sentiment, XRP, which recently recovered the $1.45 support level, is highly likely to stage an even stronger rally.

The derivatives market is also gradually but clearly turning bullish. As of Wednesday, XRP futures open interest increased from $2.54 billion the previous day to $2.59 billion. However, this slight increase is still a far cry from the peak open interest of $10.94 billion recorded last July when the price hit an all-time high of $3.66, indicating a lack of explosive participation from individual investors. The media analyzed that a sharp increase in open interest, along with price gains, must accompany to solidify a firm medium-to-long-term upward outlook.

Technical indicators suggest solid buyer control, reinforcing a short-term upward bias. Currently trading around $1.45, XRP maintains a stable trend above the 50-day Exponential Moving Average (EMA) of $1.41 and the SuperTrend support level of $1.32, effectively absorbing selling pressure during dips. The Relative Strength Index (RSI) on the daily chart hovers around 61, supporting the uptrend, and the Moving Average Convergence Divergence (MACD) histogram has also turned back into positive territory, signaling positive buy signals.

Experts identified the 100-day EMA at $1.51 as the primary resistance level to overcome for a sustained upward trend. If broken, it would face resistance from the downtrend line near $1.57. 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 the market entering a corrective phase immediately.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*