XRP: Funds Pour In, Yet It Fails to Rise... The Reason for the $1.40 Wall Stagnation

▲ Ripple (XRP) ©

XRP (Ripple) is failing to gain upward momentum, stalled by the $1.40 resistance level despite increasing demand for derivatives.

According to investment media outlet FXStreet on April 15 (local time), XRP is currently trading around $1.37, with its rise capped below the $1.40 supply zone. While it continued its rebound from $1.32 early in the week, major moving averages are pressuring the upside, slowing down its short-term upward trend.

Interest from institutional and retail investors is flowing back in. US-listed spot XRP ETFs recorded capital inflows for two consecutive days recently, with $1.46 million on Monday and approximately $9 million on Friday. The cumulative inflow reached $1.22 billion, and the average assets under management were approximately $959 million. Analysis suggests that if these fund flows continue, XRP may continue its attempts to break through $1.40.

The derivatives market is also expanding simultaneously. Open interest increased from $2.38 billion on the previous day to $2.57 billion, indicating growing investor participation. Considering that XRP reached an all-time high of $3.66 when open interest surged to $10.94 billion in the past, the current expansion of the derivatives market can be interpreted as a foundation for a medium-to-long-term rally.

However, technically, downward pressure still prevails. XRP has failed to break above its 50-day exponential moving average (EMA) at $1.41, with the 100-day EMA at $1.56 and the 200-day EMA at $1.81 layered as overhead resistance. A downtrend resistance line is also formed near $1.73, indicating persistent selling pressure. The Relative Strength Index (RSI) remains in the neutral zone at 51, and while the Moving Average Convergence Divergence (MACD) shows a slight positive signal, it has not led to a clear trend reversal.

In the short term, breaking through $1.41 is considered a key turning point. If it breaks above this level on a daily closing basis, there is room for an ascent to $1.56, but conversely, if the support levels at $1.32 and $1.30 collapse, downward pressure could intensify again. The market is currently assessed to have entered a 'sideways consolidation phase' where bullish factors and technical resistance are intertwined.

*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.*