XRP Fails to Break $1.50…Did Middle East Risk Hold it Back?

▲ XRP/AI-generated image ©

XRP (Ripple) faltered amidst the re-emergence of geopolitical risks in the Middle East, failing to break through the $1.50 resistance. However, ETF inflows and increasing open interest continue to maintain upward expectations.

According to investment media FXStreet on May 11 (local time), XRP recently retreated from a high near $1.50 and is currently testing the $1.45 support level. The outlet analyzed that Middle East tensions escalated again after US President Donald Trump dismissed Iran's ceasefire proposal as "completely unacceptable," and this impact pressured investor sentiment across the cryptocurrency market.

According to CNN reports, Iran proposed amendments including recognition of sovereignty over the Strait of Hormuz and compensation for war damages, but the US rejected them. Afterward, Iran's foreign ministry countered that the proposal was a "reasonable and generous offer" considering regional stability and national interests. The market interprets the news of difficult negotiations as increasing short-term profit-taking pressure, especially since ceasefire expectations had been reflected in recent weeks.

Conversely, fund flows into XRP-related digital investment products remained robust. According to a CoinShares report, approximately $40 million flowed into XRP-related products last week. Of this, the inflow into XRP spot ETFs was estimated at about $34 million. Cumulative ETF inflows have now expanded to $1.32 billion, with average net assets reaching around $1.12 billion.

Demand from individual investors also held steady. According to CoinGlass data, XRP futures open interest increased from $2.65 billion on the previous day to $2.87 billion. The outlet analyzed that the expansion of open interest reflects investors' expectations for a rebound.

Technically, the short-term upward structure is still maintained. XRP is trading above the 50, 100, and 200 Exponential Moving Averages (EMAs) on the 4-hour chart, in the $1.42-$1.40 range. The Relative Strength Index (RSI) remains in the high 50s, indicating it's not overbought, but the Moving Average Convergence Divergence (MACD) histogram is gradually shrinking, signaling a slowdown in upward momentum. The outlet predicts that a break above the $1.50 resistance could open up further upside potential, but conversely, a breakdown below $1.40 could shake the short-term uptrend.

*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.*