Will Ripple (XRP) break $1.10? Will the Flare upgrade lead a rebound?

▲ Ripple (XRP) ©CoinReaders

XRP (Ripple) is aiming to break above $1.10, leveraging improvements in Flare Network's DeFi functionalities, but sluggish demand for spot ETFs and a bearish technical structure are limiting its upside.

According to investment media FXStreet on July 29 (local time), XRP saw a slight increase near $1.08 on Wednesday, following a neutral to moderately bullish trend in the virtual asset market. The market is focusing on the US Federal Reserve's (Fed) benchmark interest rate decision, with a prevailing forecast that rates will be frozen at 3.50-3.75%. However, the CME FedWatch reflected a 35% possibility of a 25bp hike.

Flare Smart Accounts v1.3 has streamlined the process of depositing XRP into decentralized finance (DeFi) to earn returns. Previously, two signatures were required on the XRP Ledger (XRPL), but with this improvement, users only need to select their desired vault and sign once from their existing XRPL wallet. Subsequent necessary procedures are automatically handled by Flare.

The new method operates on a non-custodial structure and does not require a separate Ethereum Virtual Machine (EVM) key, gas token, or manual bridging. XRP set as collateral remains on the XRPL under the holder's control and is backed on a 1:1 ratio. The platform automatically issues FXRP, deposits it into the selected vault, and begins generating returns. Flare explained that it grants authorization based on proof, not signature verification, and that no third party holds the funds.

Institutional demand remains sluggish. According to SoSoValue, after a slight inflow of $592,000 into XRP spot ETFs on Monday, no significant fund movement was recorded on Tuesday. While cumulative net inflows stand at $1.5 billion and net assets at $972 million, indicating sustained long-term investment demand, short-term buying pressure is limited amid risk-averse sentiment.

Technically, XRP remains below its 50-day exponential moving average (EMA) of $1.13, with the SuperTrend line at $1.16 and the 100-day and 200-day EMAs at $1.22 and $1.42 also acting as overhead resistance. The daily Relative Strength Index (RSI) is 46, and the Moving Average Convergence Divergence (MACD) histogram shows a slight negative, indicating selling dominance, but no panic selling signals have been confirmed. In case of a rebound, $1.13 and $1.16 are the primary resistance levels, while $1.05 and $1 are suggested as key support levels to determine re-entry if it declines.

*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.*