ETF Funds Cool Down, But Rebound Attempt! XRP Stirring Again

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XRP (Ripple) is attempting a rebound, barely holding onto the $1.38 support level, but lukewarm ETF fund flows and a decrease in open interest are limiting its upward momentum.

According to investment media FXStreet on May 8 (local time), XRP recorded a weekly high of $1.47 before undergoing a correction and confirming support around $1.38. The market is currently focusing on whether it can recover $1.40 in the short term as a key turning point.

However, interest from institutional and individual investors has somewhat cooled. According to SoSoValue, the XRP spot ETF recorded zero net inflow on this day. Although funds of $3.87 million on Monday, $11.28 million on Tuesday, and $13.03 million on Wednesday had flowed in previously, the upward trend has paused for now. The cumulative net inflow was tallied at $1.32 billion, and total assets under management remained at around $1.08 billion.

The derivatives market's enthusiasm is also waning. According to CoinGlass data, XRP open interest decreased from $2.61 billion the previous day to $2.59 billion. The media reported that as retail investor demand weakens, some traders are increasing short positions, betting on a potential breakdown below $1.38. In particular, liquidity is concentrated in the $1.40 range, raising the possibility of increased short-term volatility.

Technically, clear reversal signals are still limited. XRP is currently trading below its 50-day Exponential Moving Average (EMA) of $1.41, with the 100-day EMA at $1.50 and the 200-day EMA at $1.72 remaining as overhead resistance. Additionally, the downtrend line resistance zone at $1.45 is cited as an additional burden. The Relative Strength Index (RSI) remains around 49 on the daily chart, and the Moving Average Convergence Divergence (MACD) histogram is also moving slightly in negative territory, indicating a lack of strong buying momentum.

On the other hand, at the bottom, the SuperTrend indicator maintains a buy signal around $1.32. The market believes that if XRP breaks above $1.41 again, it could open up the possibility of retesting the $1.45 resistance. Conversely, if the $1.38 support level breaks, short-term downward pressure could intensify again.

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