XRP extended its recovery for a second straight session as broader crypto market sentiment strengthened and demand for its exchange-traded funds (ETFs) picked up. The token climbed to $2.1785, marking a 20% rebound from November’s lows, with both fundamental and technical factors supporting the upside.
Technical outlook points to further gains
On the three-day chart, XRP has consistently held above key support at $1.8520, a level that has repeatedly halted declines since late 2023. The token is also tracking a falling wedge pattern, with the converging trendlines nearing a breakout.
Recent price action has formed a morning star candlestick formation, while XRP is also developing an inverse head-and-shoulders structure – both typically bullish reversal patterns.
XRP has pushed above the 50% Fibonacci retracement and is finding support around the strong, pivot, and reverse levels on the Murrey Math Lines framework.
A sustained drop below $1.8520, however, would invalidate the bullish scenario and signal renewed bearish control, potentially exposing the next major support near $1.5625.
Rising ETF inflows boost demand
Beyond technicals, XRP continues to attract strong institutional interest. Data from SoSoValue show that spot XRP ETFs have accumulated $824 million in net inflows and are on track to reach the $1 billion milestone. Additional demand could come from Vanguard’s decision to allow clients access to crypto ETFs.
JPMorgan analysts project that XRP ETFs could see inflows of up to $8 billion in their first year, underscoring robust investor appetite.
Open interest in XRP futures is also rising, reinforcing bullish sentiment. After bottoming at $3.19 billion on November 22, open interest has recovered to $3.91 billion, suggesting the market may have found a floor as traders rebuild long exposure.
Macro backdrop remains supportive
Macro conditions are also expected to favour XRP. Anticipated Federal Reserve rate cuts and growing speculation that Kevin Hassett may be nominated as the next Fed Chair both point to a more accommodative environment – typically positive for risk assets, including major cryptocurrencies.
