The cryptocurrency market has built on its positive start to the week as Bitcoin and other major coins rallied on Thursday.
Bitcoin briefly topped $74k, while Ether is trading above $2,100.
Ripple’s XRP rallied alongside the others and is now trading above $1.40 at the time of writing on Thursday.
Despite the war in the Middle East, crypto prices have not collapsed.
However, analysts remain concerned about volatility amid geopolitical and macroeconomic uncertainty.
XRP soars on growing institutional demand
Ripple’s XRP is trading above $1.4, up by nearly 4% in the last 24 hours.
The positive performance comes as interest in XRP spot Exchange-Traded Funds (ETFs) continues to expand.
According to CoinGlass, XRP ETFs recorded their sixth consecutive day of inflows, totalling $3.08 million on Wednesday.
Canary Capital ETF accounted for all the inflows, while Bitwise, 21Shares, and Franklin XRP ETFs recorded no fund flows.
Meanwhile, cumulative inflows are at $1.25 billion for the third day, with net assets steady around $1 billion in the same period.
The inflows indicate that appetite for risk assets such as XRP is improving despite the current market conditions.
The XRP derivatives market has also improved, aligning with the overall bullish trend.
The CoinGlass futures Open Interest (OI) for XRP reads $2.36 billion on Thursday, up from the $2.11 billion recorded on Wednesday.
While the OI has improved since the start of the week, it is still way below the July 2025 peak of $10.94 billion when XRP hit its recent high of $3.66.
The downtrend over the past eight months suggests that traders have lost confidence in XRP’s ability to sustain an uptrend.
While the market continues to underperform, Ripple has been building its products to capture more financial institutions.
The firm is leveraging recent acquisitions, including Palisade for custody and treasury automation and Rail for virtual accounts and collections.
Ripple’s recent payments expansion allows customers to collect, hold, exchange, and complete payouts in both fiat and stablecoins on a single unified platform.
Technical outlook: XRP eyes the FVG at $1.60
The XRP/USD 4-hour chart remains bearish despite the recent market rally.
At press time, XRP is trading at $1.41, with the bulls looking to establish a strong support around the $1.35 region.
XRP is trading below the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs), which continue to slope lower and frame a broad downtrend.
The major resistance level remains at $1.61, with the bulls looking to close the 4-hour FVG at $1.6048 before attempting to take out the resistance.
The momentum indicators have improved, which could boost XRP’s price in the near term.
The Moving Average Convergence Divergence (MACD) is hovering above its bullish signal on the 4-hour chart, while the Relative Strength Index (RSI) at 55 points suggests a buy-side dominance.
If the buyers overcome the $1.43 resistance level, XRP will push towards the $1.54 supply zone, easing the bearish bias in the process and allowing the capture of the $1.60 FVG.
However, if the recovery attempt fails and sellers regain control, XRP will retest the recent low of $1.34, with further demand at $1.27, which aligns with Saturday’s low.