Key takeaways
- XRP has lost its fourth place in the market to BNB after losing 3% of its value in the last 24 hours.
- The coin is struggling to overcome the $2.2 resistance level despite growing ETF demand.
XRP loses fourth place to BNB
XRP, the native coin of the Ripple ecosystem, has lost more than 2% of its value in the last 24 hours and is currently trading at $2.11 per coin. The bearish performance comes despite rising Open Interest (OI) and institutional inflow into XRP ETFs.
According to CoinGlass, XRP’s OI has increased to $4.09 billion on Thursday, up from $3.93 billion on Tuesday. The increase, albeit minor, suggests that investors are beginning to lean more into risk.
If the OI continues to increase, it could see XRP’s price rally higher in the near term and target the nearest resistance level. Despite that, the OI sits below the yearly high of $4.55 billion, recorded on January 6.
Furthermore, interest in XRP spot Exchange Traded Funds (ETFs) continues to build. SoSoValue reports that XRP ETFs gained nearly $11 million in inflow on Wednesday. Since their launch in November, XRP ETFs have recorded just one outflow, totaling nearly $41 million on January 7. The cumulative inflow now stands at $1.25 billion with net assets at $1.54 billion.
Will XRP resume its uptrend soon?
The XRP/USD 4-hour chart is bearish and efficient as Ripple has underperformed over the past few days. The coin is still trading above the key support provided by the 50-day Exponential Moving Average (EMA) at $2.08.
A minor decline in the Relative Strength Index (RSI) to 53 on the 4-hour chart confirms the buildup of downside pressure. If the RSI continues to decline, XRP could retest the $1.90 support level in the near term.
However, the Moving Average Convergence Divergence (MACD) indicator on the same chart holds above the signal line, which could allow investors to bet on XRP’s price soaring higher.
If the daily candle closes above the 100-day EMA at $2.21, XRP could extend its rally towards the 200-day EMA ($2.33).
