"It's Not Over Yet"...XRP, If It Only Breaks Resistance, The Tide Will Turn

▲ Ripple (XRP) ©Godasol

XRP (Ripple) is maintaining above $1.40, continuing a limited rebound, based on ETF fund inflows and a recovery in investor sentiment.

According to FXStreet, an investment media outlet, on May 5 (local time), XRP continued to trade above $1.40, aligning with the overall cryptocurrency market's upward trend despite Middle East tensions. In particular, the sustained ceasefire between the US and Iran gradually stabilized risk asset preference, which influenced price defense.

Investor sentiment indicators also showed improvement. The Crypto Fear & Greed Index rose from 40 to 50 the previous day, moving from the fear zone to a neutral level. This suggests that market participants' risk aversion is easing, and buying sentiment is gradually recovering.

ETF fund flows also sent positive signals. The XRP spot ETF saw a net inflow of $3.87 million as of May 5, indicating a resurgence of investor interest. Cumulative inflows stand at $1.29 billion, and net asset value remains around $1.07 billion. However, in the derivatives market, open interest only saw a limited increase to $2.54 billion, suggesting that upward momentum is not yet sufficient.

Technically, overhead resistance remains clear. XRP is trading below its 50-day exponential moving average of $1.41, with the 100-day line at $1.51 and the 200-day line at $1.74 acting as strong resistance zones. The Relative Strength Index (RSI) is holding above neutral at 52, showing a moderate bullish signal, but the Moving Average Convergence Divergence (MACD) is showing a contracting trend in the negative territory, interpreted as a weakening of downward pressure.

The future trend depends on whether key resistance levels are broken. If the $1.51 level is breached on a daily closing basis, it opens up the possibility of a trend reversal to the upside, with room for further gains up to $1.74. Conversely, on the downside, $1.39 and $1.37 are expected to act as major support levels.

*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.*