XRP Price Holds $1.35 Support as ETF Inflows Target $1.80

XRP (XRP) has gone up by 20% in the past 7 days, as regulatory tailwinds in the United States boosted the crypto market.

This altcoin followed the pack and broke above its 200-day exponential moving average (EMA) for the first time since October 2025, triggering a massive short squeeze that pushed it to as much as $1.70 at some point last week.

The selling pressure ramped up after the token hit that mark, as early buyers started to cash out their profitable trades. As a result, XRP retested that 200-day EMA from above yesterday, and late buyers showed up to scoop up the token.

Market Sentiment Swings to Extreme Greed After Last Week’s Rally

The market is closely monitoring the speeches that come out of the Federal Reserve’s Jackson Hole Symposium. Last week, along with the U.S. Securities and Exchange Commission (SEC) newly proposed crypto rules, the Treasury Department announced an increase in its bond buybacks.

Secretary Scott Bessent appeared to have used this mechanism as a way to pressure the Fed into easing market conditions. As a result, the market no longer expects a rate hike in September.

Moreover, analysts are divided regarding the dot plot for the October meeting, as data from FedWatch show even odds of a 25 basis point hike by then.

It seems highly unlikely that the Fed will lower rates at this point with inflation running at 3.7%. However, the crypto market should greet any further delays in the next rate increase, which would support the continuation of this rally toward higher price zones.

Sentiment shifted dramatically recently as a result of these changes in the regulatory and macro backdrop. The Crypto Fear and Greed Index is now in “Extreme Greed” territory at 80 — a dramatic U-turn compared to a couple of weeks ago.

The market has not been this optimistic since December 2024. Back then, cryptos were booming following President Donald Trump’s victory, and XRP traded for around $3.40.

Rally to $1.8 Seems Likely as XRP ETFs Notched Their 7th Day of Positive Inflows

Exchange-traded funds (ETFs) linked to XRP booked their 7th consecutive day of positive inflows yesterday, with investors pouring $106 million into these vehicles during this period.

This reflects Wall Street’s renewed interest in cryptos, and it indicates that traders are positioning for the continuation of this rally.

Turning to the daily chart, we can see that XRP bounced strongly off the $1.35 area, which is where the 200-day EMA currently sits. This is our key support to watch in case of another pullback, but we expect that the buying pressure may have been strong enough to catapult XRP to its next target.

The Relative Strength Index (RSI) is coming out of overbought territory. However, this momentum oscillator is still bullish as its recent move to 87 indicates a massive trend reversal resulting from XRP’s climb above multiple key resistances.

A long position with a target set at $1.80 and a stop price below the 200-day EMA currently offers a 3x risk-reward ratio. Chairman Kevin Warsh’s speech on Friday may ultimately set the market’s tone for the weekend.

The direction that cryptos will take will depend on whether the Fed leans toward a “wait and see” approach or opts for a more aggressive approach.