The cryptocurrency market is experiencing a significant shift as XRP has fallen by 3%, relinquishing its position as the fourth-largest digital asset to BNB. This decline comes despite an increase in demand for XRP exchange-traded funds (ETFs), which have seen consistent inflows since their inception.
Data from CoinGlass indicates that XRP has faced increasing pressure, with its price now caught between the growing interest in ETFs and formidable technical resistance levels. The drop in value has occurred alongside a rise in Open Interest for XRP, suggesting that institutional interest remains robust, even as the price struggles.
Over the past 24 hours, XRP has witnessed a notable decrease, marking a loss of momentum in its recent upward trend. This slide has pushed the asset”s Open Interest higher, although it remains beneath the peak levels observed earlier in the year, specifically on January 6.
Reports indicate that XRP spot ETFs recorded further inflows as of Wednesday, maintaining a strong inflow trend with only one outflow since their launch in November. The cumulative inflows and net assets have steadily increased, reflecting a bullish sentiment from institutional investors.
Analyzing technical indicators reveals a mixed outlook for XRP. The 4-hour chart shows the asset trading above the 50-day Exponential Moving Average, which serves as a crucial support level. However, the Relative Strength Index (RSI) has slightly declined, hinting at mounting downside pressure that could prompt a retest of lower support levels. Conversely, the Moving Average Convergence Divergence (MACD) indicator remains above its signal line, suggesting that bullish momentum is still present.
A daily candle close above the 100-day EMA could signal a potential rally towards the 200-day EMA, according to technical analysis. The overall performance of XRP reflects the broader volatility within the cryptocurrency markets as assets navigate fluctuating institutional interests and prevailing technical resistance levels.
