XRP price surged more than 5% on Wednesday to $1.42, bringing its market capitalization back above $86.6 billion. The token has now recovered nearly 30% from its monthly low, mirroring a broader crypto uptick that lifted Bitcoin to $66,500 and Ethereum near the $2,000 resistance level. Altcoins like Morpho, Polkadot, and Avalanche also rallied.
Fund flows show improvement: ETP inflows & open interest rise
Spot XRP ETPs broke a two-day dry spell, adding $3 million on Tuesday. Cumulative inflows now stand at $1.22 billion, with total assets under management reaching $981 million. Futures open interest climbed from this week's low of $2 billion to $2.3 billion, while spot trading volume exceeded $3.1 billion.
The bounce coincided with a recovery in traditional markets: Dow Jones futures rose more than 200 points, while Nasdaq 100 and S&P 500 futures added 125 and 30 points respectively.
Technical picture: doji candle meets double-bottom
On the daily chart, XRP formed a doji candle on Tuesday – characterized by a small body and short upper/lower shadows – widely regarded as a bullish reversal signal. This pattern was followed by a breakout from a double-bottom formation with a support zone near $1.3435 and a neckline at $1.6617. A clean break above the neckline would open the door for a 17.7% advance to the $1.6617 target.
Risk: dead-cat bounce still on the table
Despite the technical optimism, some analysts caution that the rebound could be a dead-cat bounce – a temporary recovery within a downtrend. The bull case would be invalidated if XRP fails to clear the 100-day Exponential Moving Average and flip the Supertrend indicator from red to green. Until then, the rally is treated with skepticism.