XRP eyes breakout above $2.3

Key takeaways

• XRP has flipped BNB to become the third-largest cryptocurrency by market cap.
• The coin could rally towards the $2.3 resistance level in the near term.

XRP tops $2.1

XRP, the native coin of the Ripple ecosystem, is up 13% in the last seven days, outperforming Bitcoin and Ether in the process. The rally comes as institutional and retail demand push prices higher.

XRP spot ETFs listed in the United States (US) experienced inflows of $43 million last week. Data revealed that since their debut in November, the funds have maintained steady weekly inflows, suggesting growing institutional investor interest.

The five XRP ETF products recorded approximately $13.6 million in inflows on Friday, taking the cumulative net inflow to $1.18 billion and net assets to $1.37 billion.

In addition to that, retail interest in XRP is slowly returning following the coin’s poor performance in December. Data obtained from Coinglass shows that XRP’s futures Open Interest (OI) increased to approximately $3.8 billion on Monday, up from $3.6 billion the previous day. The OI averaged $3.3 billion on Thursday, signaling that retail demand is slowly returning. 

XRP eyes a breakout above $2.3

The XRP/USD 4-hour chart is bullish and efficient as the coin has performed well over the past few days. At press time, XRP is trading at $2.12, above the 50-day EMA support level of $2.05.

The Moving Average Convergence Divergence (MACD) indicator upholds a positive outlook on the daily chart, with green histogram bars expanding above the mean line. 

The Relative Strength Index (RSI) at 75 and rising supports XRP’s bullish thesis. If the RSI continues to increase, XRP could enter the overbought region.

If the bullish trend continues, XRP could rally towards the next resistance levels represented by the 100-day EMA at $2.22 and the 200-day EMA at $2.34. However, failure to push higher could see XRP retest the $2.00 psychological level once again.