The cryptocurrency market is showing improved sentiment following the weekend selloff. Bitcoin is approaching $77,000, while Ethereum is trading around $2,150.

XRP, Ripple’s native coin, is also in the green and now trading at $1.388, as per data from crypto trading apps.

The cross-border token could rally higher in the near term amid growing ETF inflows and improving momentum indicators.

XRP has underperformed over the past few days, losing 5% of its value last week. The bearish performance has seen XRP drop below the $1.40 level.

The bulls are now holding the $1.34 support level, which could allow XRP to rally higher in the near term.

XRP’s bearish performance comes despite growing institutional demand. Last week, XRP spot ETFs recorded $60.495 million in net inflows, partially offsetting broader outflows.

The trend has continued this week, with the ETFs recording an inflow of $10.7 million on Monday.

The growing ETF inflows suggest that institutional investors are absorbing the selling pressure.

This could allow XRP’s price to rally higher once the broader crypto market selloff ends. Retail demand has remained muted over the past few days, thanks to the ongoing bearish performance.

According to CoinGlass, XRP’s futures Open Interest (OI) stands at $2.79 billion on Tuesday, down 0.01% in the last 24 hours. 

The OI has remained stagnant over the past few days, suggesting limited retail activity. Meanwhile, the OI-Weighted Funding Rate flipped positive on Monday and now reads 0.0015%.

The positive OI-weighted funding rate suggests that traders are starting to open buy positions in the market.

If this metric remains positive, the market could see increased retail participation over the next few days.

The XRP/USD 4-hour chart remains bearish and efficient as the broader crypto market remains under pressure. 

At press time, XRP is trading at $1.388, below the EMA-20 ($1.4150), EMA-50 ($1.3939), and EMA-200 ($1.7149) levels.

The momentum indicators are still within the negative territories, indicating that the sellers are still in control. 

The 4-hour MACD lines are within the negative territory but flashing strong buy signals. The RSI of 39 suggests that the bearish trend is slowly fading. 

If the bulls hold the $1.34 support level, they could push XRP’s price higher towards the first resistance level at $1.415.

An extended rally could bring the $1.4477 resistance into focus, with a daily candle close above this level potentially prompting a short-term rebound.

However, if the selloff continues, the first major support level lies at $1.34. A daily close below $1.34 would indicate a bearish extension and potential for further declines.

The broader macroeconomic conditions, like the ongoing US-Iran tensions and the rising inflation, continue to affect XRP and the broader cryptocurrency market.

The post XRP holds $1.34 support as ETF inflows hint at possible breakout appeared first on Invezz

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