Ripple (XRP) Price Gains on Lower US Inflation Data
Ripple (XRP) rose over 3% and traded at $1.87 on Friday. It recovered from a low of $1.77 earlier in the day. The rise follows softer US Consumer Price Index (CPI) data. In November, inflation rose 2.7% yearly, below the expected 3.1%. If XRP closes above $2.00, it may trigger short-term gains. However, some technical signals still show bearish trends that may limit upside.
XRP ETFs See Continued Inflows Amid Growing Institutional Interest
XRP spot ETFs in the US saw about $30 million in inflows on Thursday. Grayscale’s GXRP ETF led with $10 million in new investments. 21Shares’ TOXR ETF added nearly $10 million, and Franklin Templeton’s ZXRP ETF received almost $7 million. Total inflows since November now exceed $1 billion. This steady demand shows growing interest from large investors. It may help keep XRP’s price rising.
On the other hand, retail investor interest has dropped. This hurts the derivatives market and causes frequent sell-offs. Futures Open Interest (OI) fell to $3.21 billion on Friday from $3.52 billion on Wednesday. Since the October 10 flash crash, OI has stayed between $3 billion and $4 billion. Before the crash, OI was as high as $10.94 billion in July. XRP will need a rise in OI to support a solid price recovery. Otherwise, gains may be limited as investors pull back.
Technical Analysis: XRP Shows Signs of Strength but Bears Remain
XRP’s Relative Strength Index (RSI) is rising but remains low at 37. If RSI moves closer to 50, it could confirm a short-term bullish trend. However, the Moving Average Convergence Divergence (MACD) is still negative and giving a sell signal. This could cause investors to reduce positions if the trend continues.
The overall price trend is bearish. The 50-day, 100-day, and 200-day exponential moving averages (EMAs) are all sloping downward, currently at $2.15, $2.34, and $2.42 respectively. XRP needs to break above these EMAs to strengthen bulls’ chances. A close above $1.77 might help steady a move toward $2.00. Breaking above the 50-day EMA could clear the path for gains targeting $3.00 in the near term.
