TLDR
- XRP price has formed a bullish flag pattern on the daily chart
- The new REX-Osprey XRPR ETF attracted over $30 million in assets in just 3 days
- XRP is trading near $2.90 and the 100-hourly Simple Moving Average
- Technical analysis shows a cup-and-handle pattern forming, often indicating upward movement
- Price is currently facing resistance at $3.00 level while finding support near $2.85
The cryptocurrency XRP has been showing mixed signals in recent market activity, with a new ETF success story potentially setting the stage for future growth. While the price has experienced a downturn since July, several technical indicators and market developments suggest a possible turnaround.
The recently launched REX-Osprey XRPR ETF has made a strong market entrance, accumulating over $30 million in assets within just three days of trading. This rapid growth demonstrates healthy interest from American institutional investors.
The fund carries an expense ratio of 0.75%, meaning investors pay $750 annually in fees for every $100,000 invested. This rate is higher than BlackRock’s IBIT ETF, which charges 0.25% or $250 annually for the same investment amount.
Market observers view the XRPR ETF’s early success as a positive indicator for the pending approval of Act 33 funds. Analysts predict these funds from companies like Grayscale and Fidelity could attract between $8 billion and $10 billion in the first year.
Political factors may also influence XRP’s trajectory. Donald Trump’s push to allow retirement accounts such as 401(k) plans to invest in cryptocurrencies could bring additional capital into the market.
The expected Federal Reserve interest rate cuts could further benefit XRP. Historically, lower interest rates tend to create favorable conditions for higher-risk assets like cryptocurrencies.
Technical Analysis Shows Mixed Signals
On the technical side, XRP price charts reveal several patterns worth noting. The daily chart shows XRP has formed a downward sloping channel, connecting the highest and lowest points since July, which forms part of a bullish flag pattern.
The price has maintained position above the 200-day moving average. Technical analysts have also identified a cup-and-handle formation, typically considered a bullish signal.
However, recent price action shows XRP struggling to maintain momentum. After finding support near $2.680, XRP started a recovery wave that outpaced Bitcoin and Ethereum.
The price successfully moved above the $2.80 and $2.85 resistance levels and cleared the 50% Fibonacci retracement level of the decline from $3.138 to $2.678. However, sellers became active as the price approached $3.00.
Short-Term Price Outlook
XRP is currently trading near $2.90 and the 100-hourly Simple Moving Average. A bullish trend line provides support at $2.850 on the hourly chart.
For upward movement, XRP faces resistance at $2.95. The first major resistance sits at $2.9620, which coincides with the 61.8% Fibonacci retracement level. Breaking above this could push the price toward $3.00, with further resistance at $3.050 and $3.120.
If XRP fails to clear the $2.9620 resistance, it may continue downward. Initial support exists near $2.880, with major support at $2.850. A close below this level could send the price toward $2.780, with the next support at $2.70.
Technical indicators show mixed signals. The MACD for XRP/USD is gaining momentum in the bearish zone, while the RSI sits below the 50 level.
Some analysts maintain a bullish long-term outlook, with targets as high as $4.30 if current patterns play out. However, a drop below $2.50 would invalidate this forecast.
Trading volume remains moderate as market participants await clearer directional signals. The recent price recovery has stalled with bears active near the $3.00 threshold.
The hourly chart shows the formation of a bullish trend line with support at $2.850, which could determine the next price move.
For now, XRP price continues to fluctuate between support and resistance levels as traders watch for a decisive break in either direction.
The price of XRP reached $3.138 recently before pulling back to $2.678. It has since recovered partially but faces resistance near the $3.00 mark.
