The cryptocurrency market is off to an excellent start to the week, with support levels holding on Monday, allowing the bulls to push prices higher.
XRP, the native cryptocurrency of the Ripple ecosystem, is trading above $1.41 on Tuesday after the bulls successfully defended the $1.35 support level on Monday.
The rally comes despite XRP facing significant capital outflows last week, reflecting sticky risk-off sentiment.
However, retail interest has slightly increased since Monday.
XRP rallies despite capital outflows
XRP is up 4% in the last 24 hours, making it one of the best performers among the top 10 cryptocurrencies by market cap.
Its positive performance comes despite XRP-related digital asset investment products recording outflows of $30 million last week.
The outflow continued on Monday, with $13.52 million recorded on Monday.
The total assets under management stand at roughly $2.4 billion, with year-to-date inflows at $110 million.
While institutions are cautious regarding XRP products, retail investors are increasing their position in the market.
According to CoinGlass, XRP’s futures Open Interest (OI) stands at $2.39 billion on Tuesday, up from the $2.25 billion recorded yesterday.
While the OI has increased since Monday, it remains significantly below the $10.94 billion peak recorded in July.
The decline over the last eight months undermines retail interest. OI reflects the notional value of outstanding futures contracts.
XRP bulls eye the $1.48 resistance level
Similar to Bitcoin and Ether, XRP’s 4-hour chart remains bearish and efficient.
However, the momentum indicators have switched bullish.
The Moving Average Convergence Divergence (MACD) indicator is above the signal line, indicating a growing bullish momentum.
The Relative Strength Index (RSI) at 61 is above the neutral zone and approaching the overbought region, consistent with a market switching to a bullish trend after extended drawdowns.
Currently, XRP is still trading below the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), keeping the broader bias bearish.
The major resistance level stands at $1.58. Crossing this resistance level would switch the bias on the higher timeframe bullish, allowing XRP to target new yearly highs.
However, XRP will need to break above the recent high of $1.48 before it can attempt to top the stronger barrier at the 50-day EMA around $1.53.
A sustained break above $1.58 would be needed to challenge the broader bearish narrative and expose the 100-day EMA zone at $1.75.
On the flip side, if the recovery fails, the bulls would need to defend the $1.33 support level once again.
A break below this support would open the way for XRP to retest the February 28 low of $1.27.
The post XRP price climbs above $1.41 as bulls target $1.48 resistance appeared first on Invezz
