XRP, Funds Poured into ETFs...Why Can't it Consistently Break the $1.5 Resistance?

▲ XRP/ChatGPT generated image

Despite ETF fund inflows and increasing demand for derivatives, XRP is struggling to gain short-term upward momentum, remaining trapped below the $1.50 supply zone.

FXStreet reported on May 12 (local time) that XRP is moving in a range approximately 3% lower than its weekly opening price of $1.47 and about 4% lower than its monthly high of $1.51, indicating increasing overhead resistance pressure. While buying demand remains, the price has failed to break above the supply zone around $1.50, highlighting technical burdens.

Demand for XRP in the derivatives market is steadily increasing. XRP futures open interest reached a three-month high of $3.01 billion, up from $2.87 billion the previous day. This represents a 30% increase from the year's low of $2.11 billion recorded in early March. FXStreet explained that the rise in open interest indicates increased market participation by retail investors and a potential recovery in risk appetite.

Funds are also flowing into US-listed XRP spot ETFs. According to SosoValue data, XRP spot ETFs attracted nearly $26 million on Monday, with cumulative net inflows totaling $1.35 billion. The average net asset size is approximately $1.18 billion. The Crypto Fear & Greed Index also slightly improved market sentiment, rising from 48 to 49 the previous day.

However, the technical structure remains limited. XRP is maintaining short-term support, staying above the 50-day exponential moving average (EMA) at $1.42 and the Supertrend support line at $1.33. However, it remains below the 100-day EMA at $1.50 and the 200-day EMA at $1.71, indicating that a clear mid-term uptrend structure has not yet recovered. The MACD histogram shows a slightly positive trend, and the Relative Strength Index (RSI) is around 57, indicating improved momentum before the overbought stage.

On the upside, the area around $1.50, where the 100-day EMA and the declining resistance trendline converge, has been identified as the first hurdle. If XRP forms a daily close above this level, the next resistance zone at $1.71, where the 200-day EMA is located, will open up. Conversely, if it breaks below the short-term support at $1.44 and the 50-day EMA at $1.41, downward pressure could extend to the Supertrend support zone at $1.33.

Despite demand signals from ETF fund inflows and increasing open interest, the XRP market is failing to break through price resistance. A daily close above the $1.50 overhead supply zone will act as the demarcation line between a short-term rebound and further correction.

*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.*