Key Insights:
- XRP’s recent price surge hit a strong resistance at the 50-day EMA, despite solid growth in Ripple’s market share and stablecoin adoption.
- Ripple USD (RLUSD) crossed $900 million in market cap, reflecting a significant rise in demand and adoption in just one month.
- Institutional demand for XRP continues to grow, with XRP ETFs holding over $470 million and futures open interest hitting new highs.
XRP’s impressive price surge recently faced significant resistance at the 50-day Exponential Moving Average (EMA), despite strong underlying fundamentals supporting its rally. The token reached a high of $2.6340, marking its highest point since early October. This upward momentum saw a 48% increase from its year-to-date lows, signaling a brief shift into a local bull market for XRP.
XRP’s rally has been fueled by solid fundamentals, notably Ripple’s stablecoin, Ripple USD (RLUSD). Launched in December 2024, RLUSD’s market capitalization has grown substantially, crossing the $900 million mark. This milestone is significant, reflecting the growing acceptance and demand for Ripple’s stablecoin. RLUSD’s market cap stood at $789 million just a month ago, indicating a $114 million rise in just one month.
In addition to the market cap growth, RLUSD’s transaction volumes have surged. The adjusted 30-day transaction volume for RLUSD now exceeds $4.3 billion, marking a remarkable 135% increase. Furthermore, the number of RLUSD transactions has risen by 54%, reaching 463,000 over the past month. These figures point to a solid increase in market activity for the stablecoin.
Institutional Demand for XRP Grows
XRP’s strong performance is also supported by increasing demand from institutional investors. The launch of XRP-focused Exchange-Traded Funds (ETFs) has attracted substantial assets. The Teucrium XRP ETF (XXRP) now holds $366 million in assets, while the newly launched REX-Osprey XRP ETF has accumulated over $108 million. These figures highlight growing institutional interest in XRP, further validating the token’s market position.
The rise in XRP futures open interest, which has recently reached $4.4 billion, further underscores this demand. This figure is a notable increase from the previous month’s low of $3.4 billion. Similarly, both open interest and notional volume on the CME have shown significant growth, contributing to XRP’s continued upward trajectory.
Technical Resistance and Outlook for XRP Price
Despite the positive market signals, XRP’s price remains constrained by the 50-day EMA, which has served as a strong resistance level. The token’s price is also trading below other key technical indicators, such as the Supertrend and the Ichimoku Cloud, which further limit its potential for immediate gains. Additionally, XRP remains just below a key support pivot point according to the Murrey Math Lines tool.
To confirm the bullish outlook, XRP must clear these resistance levels. A successful breakout above the 50-day EMA and other key indicators could signal further gains, possibly pushing the price towards the major support/resistance level at $3.125. A drop below the $2.3435 support, however, could invalidate the bullish trend, shifting the market sentiment to more cautious.
