Is XRP’s $1.70 target within reach?

Ripple (XRP) upholds a strong bullish outlook, while consolidating near $1.50 on Tuesday. A 72% rally last week pushed the token to $1.70 before it pulled back to seek support amid possible profit-taking and an overstretched market trend.

If bulls maintain momentum above $1.50 and establish a solid demand zone, the odds of an extended breakout toward $1.70 and $2.00 increase significantly.

XRP ETFs and derivatives draw investor interest

The bullish outlook for XRP stems from improved crypto market sentiment, supported by the United States (US) Treasury’s long-term bond buyback program and renewed momentum from the Securities and Exchange Commission (SEC) to develop clearer industry regulations.

At 74, crypto market sentiment is in the Greed territory, as reflected in the Fear & Greed Index on Tuesday. This shows a marginal improvement from 73 the day before but a notable increase from 41 in the Fear territory last week.

US-listed XRP spot ETFs continue to mirror positive market sentiment, with $14 million in inflows on Monday. Although this is a markdown from last Friday’s $18 million, it extends the five-day bullish streak. Cumulative inflows stand at $1.57 billion, up from $1.55 billion over the same period. At the same time, assets under management now stand at $1.44 billion.

Retail demand is also gradually rising, as futures Open Interest (OI) holds at 2.5 billion XRP on Tuesday, up from 2.47 billion the day before. Expanding OI reinforces the bullish outlook, as more traders take on risk. However, higher OI calls for caution and tempered expectations, as a sudden correction could follow if resistance at $1.50 holds.

Technical analysis: XRP upholds constructive momentum

XRP holds well above the key Exponential Moving Averages (EMAs), reinforcing a strong bullish near-term bias as the price extends its breakout. The Relative Strength Index (RSI) at 81, however, signals overbought conditions, while the Moving Average Convergence Divergence (MACD) remains firmly positive, suggesting upside momentum is strong but increasingly stretched.

Immediate support lies at the recent breakout region around the 200-day EMA at $1.35, where a pullback could find initial demand before deeper dips test the 100-day EMA at $1.19 and the 50-day EMA at $1.16. As long as XRP holds above these stacked EMA supports, the broader uptrend is likely to stay intact. Still, overbought momentum readings warn that corrective pressures or consolidation phases may emerge before the next sustained leg higher.

(The technical analysis of this story was written with the help of an AI tool. Know more.)