XRP eyes $3.00 even as capital inflows surge - can the bulls hold?
XRP's positive trend continues as it approaches $3.00 on Monday.
XRP futures open interest rises to $8.3 billion amid stability.
Last week, digital investment products lost $104 million, while XRP's rally continues.
On Monday, Ripple (XRP) traded at $2.95 as investors tighten their grip, enhancing exposure to the derivatives market. The positive market sentiment and Bitcoin's (BTC) rise to a record level of $123,000 have boosted interest in XRP.
Digital investment products recorded the second-largest weekly inflow ever at $3.7 billion. Bitcoin and Ethereum (ETH) led the bullish race with $2.73 billion and $990 million respectively.
CoinShares analysis on Monday shows that XRP and similar digital investment products lost $104 million last week. The average inflow so far has been $231 million, raising XRP's AUM to $1.55 billion. The only asset with weekly outflows above $500,000 was Chainlink.
The 53% increase in trading volume to $23 billion during the same period indicates heightened risks to sentiment and increased trading activity. Bullish traders expect XRP to climb and extend the rally in the near term.
If the cryptocurrency market continues to applaud Bitcoin's rise to new record levels, a break and daily close above $300 is likely.
In the market report on Monday, QCP Capital noted that "the Crypto Fear & Greed Index has shifted significantly, rising from 40 to 70 in just three weeks, turning sentiment from fear to greed."
The market seems optimistic at present, but greed may cause sudden reversals, especially if investors are selling for profit.
Technical outlook: XRP accelerates its rise towards $3.00
XRP is approaching $3.00, indicating that bulls are targeting record levels above $3.40. The Money Flow Index (MFI) rises to 92 on the daily chart below, supporting the path of lesser resistance.
Therefore, XRP's price movement around the resistance level of $3.00 should be monitored. The May high of $2.65 and the 50-day moving average around $2.32 are potential support levels.