Ripple (XRP) rises above a short-term key support on Monday and trades around $1.37 at the time of writing. The remittance token upholds a broad bullish outlook, supported by steady institutional interest. Still, traders should temper expectations as momentum indicators cool following the recent rally that tagged highs of $1.70 on August 22.
XRP ETF demand backs bullish outlook
Institutional interest in XRP has been persistent for nearly two weeks, aligning with improved market sentiment. According to the Fear & Greed Index, sentiment stands at 62 on Monday, down only slightly from 69 the day before. Looking back, market sentiment averaged 27 in July, underscoring growing appetite for XRP-related investment products.
XRP spot Exchange-Traded Funds (ETFs) extended the bullish streak, marking the ninth consecutive day with $26 million recorded on Friday. This brought cumulative inflows to $1.66 billion while net assets under management average $1.44 billion. If sustained, ETF inflows could absorb selling pressure in the open market, supporting stability and potential price increases.
Technical analysis: XRP clings to key support
XRP trades at $1.37, extending its advance above the key Exponential Moving Averages (EMAs) and maintaining a bullish near-term bias. The spot price holds firmly over the 200-day EMA at $1.35, while the 100-day and 50-day EMAs at $1.21 sit well below, reinforcing a supportive structure after the recent breakout.
Momentum remains constructive, with the Moving Average Convergence Divergence (MACD) histogram positive and the Relative Strength Index (RSI) hovering around 62, hinting that buyers still control the tape, though conditions are no longer overbought.
On the downside, immediate support is at $1.35, where the 200-day EMA aligns as the first structural floor, followed by deeper demand around $1.21, marked by the 100-day and 50-day EMAs. As long as the pair holds above these moving averages, the technical tone should remain constructive, with any pullback toward the 200-day EMA likely to be viewed as a dip within a broader bullish phase rather than a trend reversal.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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