XRP Price Cannot Break Higher Despite Strong Institutional Demand and Derivatives Momentum

XRP is showing signs of weakness just below the crucial resistance level of $2.22, despite continued institutional interest and activity in the futures market. The current price is around $2.17, representing a 1% decline.   This happens when the market is uncertain, as traders await Federal Reserve Chair Jerome Powell’s remarks at the European Central Bank Forum in Sintra, Portugal.

XRP continues to attract the attention of major institutions, despite the fact that its price fluctuates.   CoinShares reported that XRP-related investment products generated $10.6 million every week, bringing the total for the year so far to $219 million.   This demonstrates that institutional investors continue to have faith, most likely because they are looking for a safe location to invest their money amid times of global economic hardship.

According to CoinGlass, XRP futures open interest remains above $4 billion, representing a 15.5% gain from June 23. This suggests that traders are still in the market, believing there is still room for prices to rise.

However, technical indicators paint a more cautionary picture. If bearish momentum persists, XRP may test the 200-day EMA near $2.10 again.  It has a difficult time getting past the 100-day EMA. The Relative Strength Index is also declining, indicating that purchasers are losing faith.

If XRP holds above support levels and capitalizes on increased institutional demand, it may remain stable before breaking out.   If people’s feelings alter, a move to $2.33 or even $2.65 is still possible.   

Also read: Bitcoin Cash Is Seeking a 52-Week High: Rising Momentum Indicates More Gains Ahead