Institutional Demand Supports XRP’s Upward Momentum
XRP has gained 1.7% over the past 24 hours and 6% over the last week, trading above the $3 mark as of Thursday. This move is underpinned by sustained institutional interest, particularly in XRP exchange-traded products (ETPs), which attracted $14.7 million in inflows during the week ending last Friday. These inflows contribute to a total of $1.4 billion invested in XRP ETPs year-to-date, according to data from CoinShares.
Comparatively, other major cryptocurrencies saw mixed flows: Bitcoin recorded $524 million in net inflows, Solana $16.1 million, and Sui $600,000, while Ether experienced significant outflows totaling $912 million. The latter suggests a possible rotation of capital from Ethereum into alternative cryptocurrencies like XRP.
Derivatives Data Reflects Growing Bullish Sentiment
Alongside spot market activity, derivatives metrics indicate increasing speculative interest in XRP. Open interest (OI) in XRP futures rose 11% over the past week to $8.3 billion, up from $7.4 billion on September 4, with a 4% increase in the last 24 hours alone, per CoinGlass data.
Moreover, the funding rate for XRP perpetual futures contracts has remained positive since August 1 and has been trending upward over the past ten days. Positive funding rates imply that more traders are taking long positions, betting on price appreciation rather than decline.
Technical Analysis Points to Higher Price Targets
XRP’s price action shows a breakout from a symmetrical triangle consolidation pattern that had been forming since mid-July. The decisive close above the triangle’s upper boundary at $2.95 earlier this week confirms this breakout, positioning XRP for further gains.
Analyst CasiTrades highlights key resistance levels at $3.08 and $3.27, with Fibonacci extension levels suggesting a longer-term target near $4.50. However, XRP must overcome the multi-year resistance at $3.66, which is likely to act as a retest zone before any sustained move higher.
On shorter timeframes, analyst Egrag Crypto identifies an ascending triangle pattern on the four-hour chart, projecting a near-term target of $3.12, contingent on maintaining support above $2.97.
More bullish perspectives exist, with some Elliott Wave analysts forecasting potential price targets as high as $20 within this cycle, though such projections remain speculative and should be approached with caution.
Outlook
With institutional flows, rising open interest, and positive technical signals, XRP appears poised for additional upward momentum in the near term. Nonetheless, traders should remain aware of key resistance levels and the inherent volatility of the crypto market.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. All trading involves risk, and readers should conduct their own research before making investment decisions.
FinOracleAI — Market View
The recent increase in institutional inflows and derivatives open interest supports a positive near-term outlook for XRP, with technical breakouts reinforcing bullish momentum. However, resistance near $3.66 poses a critical test that could determine whether the uptrend sustains toward $4.50. Market participants should monitor ETF approval developments and funding rate trends as key indicators of continued strength.
Impact: positive
