XRP price rally found substantial resistance at the 50-day moving average despite its strong fundamentals, including the growing Ripple USD market cap and ETF inflows.
Summary
- XRP price recovery faced strong resistance at the 50-day Exponential Moving Average.
- The Ripple USD stablecoin has crossed the $900 million market capitalization.
- The recently launched XRP ETF has accumulated over $108 million in assets.
Ripple (XRP) token jumped to a high of $2.6340, its highest point since October 11. It has moved into a local bull market after soaring by 48% from its lowest level this year.
XRP price is backed by solid fundamentals
The XRP token has jumped because of some of its solid fundamentals. One of these is the growing market share of Ripple USD, the stablecoin that Ripple Labs introduced in December last year.
Data compiled by CoinGecko shows that RLUSD’s market capitalization has crossed the psychological level at $900 million, a sign that it is gaining market share. RLUSD had a market cap of $789 million on Oct. 1, meaning that it has added $114 million in assets this month.
More data shows that other RLUSD metrics are improving. The adjusted transaction volume in the past 30 days stood at over $4.3 billion, a 135% jump.
More data shows that the number of RLUSD transactions jumped by 54% in the last 30 days to 463,00..
XRP price is also seeing more demand in the future and the Exchange-Traded Funds market. Data shows that the Teucrium XRP ETF (XXRP) holds $366 million in assets, while the recently launched REX-Osprey XRP ETF (XXRP) holds over $108 million in assets. These numbers mean that there is institutional demand for the coin.
XRP’s futures open interest has continued rising and stood at over $4.4 billion on Monday, up from this month’s low of $3.4 billion. The same is happening in the CME, where the open interest and notional volume have soared.
XRP price has other potential catalysts, including the recently launched Ripple Prime segment. Ripple Prime was launched after the closing of the Hidden Road transaction.
XRP price technical analysis
The daily timeframe chart shows that the XRP price has rebounded after bottoming at $2.1930 last week. This rebound happened after it formed an inverse head-and-shoulders pattern on the shorter-term chart.
The risk, however, is that the stock has found a resistance at the 50-day Exponential Moving Average indicator. It also remains below the Supetrend and the Ichimoku Kinko Hyo cloud.
Ripple price is also slightly below the strong pivot reverse point of the Murrey Math Lines tool.
Therefore, more upside will be confirmed if the token moves above the 50-day MA, Supertrend, and the Ichimoku cloud indicators. A move above these levels will point to more gains, potentially to the Major S/R pivot point at $3.125. A drop below the support at $2.3435 will invalidate the bullish outlook.
