Funds Flow Into XRP as Bitcoin Sees Outflows—Will It Break Out of Its Short-Term Range and Start a Rally?

▲ Ripple (XRP) ©

While massive funds are flowing out of Bitcoin and Ethereum, XRP (Ripple) alone is attracting substantial investment, asserting a distinct market presence. However, its price remains trapped in a narrow range between $1.45 and $1.50 amid mixed momentum, heightening market tension over whether it can trigger a short-term rally based on solid support levels.

According to investment outlet FXStreet on February 16 (local time), XRP rebounded from its weekly opening price of $1.43 to $1.67 last Sunday but is currently moving sideways between support at $1.45 and resistance at $1.50. Although the recent slowdown in the U.S. Consumer Price Index has increased expectations of a Federal Reserve rate cut in 2026, creating a favorable environment for risk assets, broader risk-off sentiment in the market is temporarily capping price gains.

Despite the consolidation phase, indicators of institutional and retail inflows remain highly positive. CoinShares data shows that while $133.3 million and $85.1 million flowed out of Bitcoin (BTC) and Ethereum (ETH) respectively last week, XRP digital investment products recorded net inflows of $33.4 million, pushing total assets under management beyond $2.5 billion. Notably, XRP spot ETFs also saw inflows of $7.65 million last week, further supporting investor sentiment.

The derivatives market is likewise fueling expectations of a rebound, as open interest in XRP futures continues to rise. Open interest increased steadily from $2.51 billion last Sunday to $2.56 billion on Monday. Retail investor interest, which stood at $2.26 billion last Friday, remains stable, suggesting that if this trend persists, it could halt the recent decline and establish a positive trajectory.

Technical indicators also point to gradually easing downside pressure and the potential for a short-term recovery. On the daily chart, the Moving Average Convergence Divergence (MACD) has crossed above the signal line, with expanding green histogram bars reinforcing a short-term bullish outlook. The Relative Strength Index (RSI), currently at 42.5, is ticking higher, indicating that selling pressure is slowly diminishing.

However, the current price of $1.48 remains below key long-term moving averages, including the 50-day exponential moving average at $1.73, indicating that technical barriers to further gains persist. A daily close above the $1.73 resistance could open the door to $1.94, but if the intraday low of $1.45 breaks down, selling pressure may intensify again, requiring tight risk management.

*Disclaimer: This article is for investment reference only, and no responsibility is taken for investment losses based on it. The content should be interpreted solely for informational purposes.*