XRP price rose for two consecutive days, reaching a high of $1.077, its highest point since June 23, as ETF inflows rose and the Ripple USD (RLUSD) market capitalization continued to rise. Ripple rose to $1.1073, up nearly 10% from its lowest level this year.
XRP ETF Inflows and Ripple USD (RLUSD) Growth
XRP price continued to rise as investors rotated into the crypto market following the recent US non-farm payrolls (NFP) data. The report showed that the labor market was relatively weaker than expected, with the economy adding just 57k jobs. This report suggested that the Federal Reserve will not hike interest rates, as some analysts feared.
XRP also rose as investors continued buying spot ETFs. Data show that these ETFs added $4.68 million in assets this month, continuing a trend that began in April. The funds have now added $275 million in assets in the past few months, bringing the cumulative inflow to $1.49 billion. They now hold $987 million in assets.
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XRP ETF inflows indicate that investors are optimistic about the coin. It is also in sharp contrast to Bitcoin and Ethereum, which have lost billions of dollars in market value. Spot Bitcoin ETFs shed over $4.5 billion in assets, while Ethereum lost $528 million.
Meanwhile, there are signs that demand for the RLUSD stablecoin has restarted. It now holds about $1.61 billion in assets, while its 24-hour volume jumped by 14.8% to $227 million. The jump is likely due to the stablecoin becoming available in Japan through Ripple’s partnership with SBI Holdings.
This is an important move as stablecoins provide the best use case for the XRP Ledger. Ripple is one of the top partners in the Open USD (OUSD) initiative.
Ripple token is also doing well amid rising volume. Its daily volume has soared to over $1.6 billion, while futures open interest has reached over $2.3 billion.
XRP Price Prediction: Technical Analysis
The daily chart shows that the Ripple token bottomed at $1.007 on June 26 and rose to $1.1097, its highest point since June 23. It has risen by nearly 10% from its lowest point this year and has moved above the key resistance level of $1.0510, its June 6 low.
The token remains below the 50-day moving average, while the Relative Strength Index (RSI) has risen from an oversold level of 18.16 to 47. Other oscillators have also bounced back in the past few days.
Still, it is too early to predict whether XRP is starting a prolonged bull run. That view will be confirmed if it rises above the 50-day moving average of $1.1855. A move above that level will point to further gains, potentially toward $1.2900, its high on June 15.
On the other hand, a drop below the key support level of $1.007 will invalidate the bullish XRP price forecast.
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