XRP rebounds above $2.61 short-term support as the derivatives market strengthens.
Bitcoin (BTC) shows signs of resuming its uptrend above $114,000 on Tuesday, after being rejected slightly below $116,500 the previous day. Altcoins, including Ethereum (ETH) and Ripple (XRP), are holding steady, as investors look forward to a potentially bullish end of the month.
Bitcoin has stabilized above $114,000, backed by steady inflows into Exchange Traded Funds (ETFs). US-listed BTC spot ETFs saw approximately $149 million in net inflows on Monday. The demand for BTC ETFs builds on last week’s momentum, which saw a total of $446 million in inflow volume.
After three consecutive days of outflows, Ethereum spot ETFs posted $134 million in inflows on Monday, bringing the cumulative total net inflow to $14.49 billion and the net assets to $28.35 billion.
The turnaround in institutional risk appetite follows the Ethereum price increase above the critical $4,000 level. If this trend continues, it would strengthen Ethereum’s short-term bullish outlook, increasing the odds of a return above the critical $4,500 resistance.
Meanwhile, retail interest in XRP is gaining momentum, as evidenced by the futures Open Interest (XRP), which averages $4.51 billion as of writing on Tuesday. According to CoinGlass data, OI, which tracks the notional value of outstanding futures contracts, plunged to $3.49 billion on October 19, the lowest level since late April, as risk-off sentiment spread across the cryptocurrency market amid macroeconomic uncertainty and the trade standoff between the US and China.
The increase in OI suggests that risk appetite is returning among retail traders, which may continue to support the current recovery.
Bitcoin is trading above the 50-day Exponential Moving Average (EMA) at $113,406, a key support level on the daily chart. Following the rejection from resistance under $116,000 on Monday, BTC collected liquidity above the 50-day EMA, which helped accelerate the current rebound above $114,000.
The Moving Average Convergence Divergence (MACD) indicator reinforces the uptrend by sustaining a buy signal since Sunday. Investors will be inclined to increase exposure as long as the blue MACD line remains above the red signal line.
The Relative Strength Index (RSI) has risen to 53, reinforcing the bullish outlook. Higher RSI readings approaching overbought territory indicate that bullish momentum is increasing.
A break above the $116,000 resistance would go a long way toward validating Bitcoin’s short-term bullish outlook. As more investors increase exposure, the chances of a breakout above $120,000 significantly increase.
Ethereum pares intraday losses at the time of writing on Monday, hinting at headwinds stemming from that profit-taking. The rejection from resistance at around $4,253 pointed to structural weakness, encouraging traders to book early profits.
The RSI, at 51 and pointing downward, is signaling a decline in bullish momentum. If the RSI declines below the midline, the path of least resistance could remain downward. The 100-day EMA at $3,973 is in line to absorb selling pressure and prevent an extended pullback toward the 200-day EMA at $3,595.
Conversely, the MACD has maintained a buy signal since Sunday, strengthening ETH’s short-term bullish potential. Investors will likely continue to increase their risk exposure with the blue MACD line remaining above the red signal line as the indicator generally rises.
Recovery above the immediate 50-day EMA resistance at $4,125 would pave the way for an extended uptrend toward the next key hurdle at $4,750, which was last tested on October 7.
As for XRP, the price is fluctuating between the 200-day EMA support at $2.61 and the 50-day EMA resistance at $2.68. The 100-day EMA sits slightly above this level at $2.73.
Key indicators, including the MACD and the RSI, back XRP’s short-term bullish outlook. The MACD issued a buy signal on Friday, prompting investors to increase their exposure. Similarly, the RSI rising to 53 suggests that bullish momentum is increasing.
Still, traders must not lose sight of lower support levels at $2.18 and $1.90 in case a reversal accelerates amid potential profit-taking.
