XRP maintained its support around $1.35, trading at $1.37 on Wednesday, May 21. This stability followed a retreat from XRP’s unsuccessful push past the $1.50 resistance level in mid-May. Analysts attribute the recent pullback to hotter-than-expected US inflation data, as well as ongoing geopolitical tensions in the Middle East.
Market dynamics and ETF inflows
Interest in exchange-traded funds (ETFs) tracking XRP has surged in recent days. The funds saw net inflows for four consecutive trading sessions, with $1.48 million entering on Tuesday alone—nearly double Monday’s $750,000 figure. Total inflows now stand at $1.39 billion, with average assets under management across funds reaching $1.12 billion.
Quick guide: ETFs (Exchange-Traded Funds) are investment vehicles that track a specific asset or a basket of assets and are bought or sold on stock exchanges like shares. Crypto ETFs let investors gain exposure to digital assets like XRP without owning them directly.
Futures market and technical picture
In the derivatives market, open interest in XRP-based futures rose to $2.93 billion by Wednesday, up from $2.83 billion the previous session. This increase signals traders’ expectations that XRP may move towards $1.40 in the short term.
Technically, XRP is trading below all key exponential moving averages: the 50-day ($1.41), 100-day ($1.48), and 200-day ($1.69) EMAs, suggesting continued short-term selling pressure. On the daily chart, the Relative Strength Index (RSI) hovers in the 40s, while the MACD remains negative, reinforcing the picture of weak current momentum.
ChartNerd, a leading analyst for XRP, highlighted that repeated failures to break above the $1.50 resistance are intensifying selling pressure: “Every failed resistance attempt increases the risk of a downward move.”
Crucial levels and scenarios
In the short term, $1.3940 stands out as the key resistance. If XRP can achieve a decisive close above this level, the next upside targets are identified at $1.42 and $1.47. Conversely, if $1.3940 proves challenging to surpass, the immediate supports are at $1.3620 and $1.3550.
Should these supports break down, prices could revisit the $1.34 level and potentially dip as low as $1.32. However, if buyers step in and hold the price above $1.3940, XRP may once again test resistances at $1.50 and $1.52.
Macroeconomic context and market calendar
Investors are awaiting publication of the US Federal Reserve’s April meeting minutes on Wednesday. These records are expected to offer clues regarding upcoming interest rate decisions, an area of focus given recent high inflation readings. The statements are likely to influence broader macroeconomic sentiment.
While XRP’s price has stabilized around $1.37, the sustained positive momentum in ETF flows and the rise in open futures positions reflect enduring investor interest despite recent volatility.
