"It's not over yet"...XRP, if it breaks resistance, the tide will turn

▲ Ripple (XRP) ©Go Dasol

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

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

Investor sentiment indicators also showed an improving trend. 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 renewed investor interest. The cumulative inflow stands at $1.29 billion, and the 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 staying below its 50-day exponential moving average of $1.41, with the 100-day moving average at $1.51 and the 200-day moving average at $1.74 serving as strong resistance levels. The Relative Strength Index (RSI) is at 52, maintaining above neutral and showing a moderate upward signal, but the Moving Average Convergence Divergence (MACD) is showing a contracting trend in the negative territory, which is 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 could open the possibility of an uptrend reversal, with further upside potential 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.*