XRP fails to break above $1.40 despite return of ETF inflows

The cryptocurrency market has slightly dipped following the rally on Tuesday.

Bitcoin, the leading cryptocurrency by market cap, is trading below $71,000, while Ether risks dropping below $2,100 if the correction persists.

Meanwhile, XRP, the native coin of the Ripple ecosystem, is trading at $1.33 after failing to surpass the $1.40 resistance level on Wednesday. 

XRP is down 3.5% in the last 24 hours as the broader crypto market sentiment dipped after Iran accused the United States and Israel of breaking the ceasefire agreement by attacking Lebanon.

XRP dips despite fresh ETF intake

XRP is the worst performer among the top 10 cryptocurrencies by market cap as it lost 3.5% of its value in the last 24 hours.

The bearish performance comes despite improved ETF inflow into XRP funds since the start of the week.

Data obtained from CoinGlass shows that XRP ETFs recorded an inflow of $3.32 million on Tuesday.

Cumulative inflows remain steady at $1.21 billion, with net assets under management at $921.57 million. 

There was no inflow on Wednesday as the market paused due to the situation in the Middle East.

However, if ETFs continue to attract inflows, sentiment surrounding XRP will increase, steadying its recovery potential.

The retail interest in XRP has also slightly declined over the past few hours. XRP’s futures Open Interest (OI) reads $2.38 billion, down from the $2.50 billion recorded on Wednesday.

If the OI should increase over the next few hours or days, it could push the price higher in the near and medium term.

A steady increase in the OI supports a sustainable uptrend as investors increase their risk exposure.

XRP could retest the $1.40 resistance level again

The XRP/USD 4-hour chart remains bearish as the market fails to take advantage of the recent pump.

At press time, XRP is trading at $1.33, with the market still cautious due to the conditions in the Middle East.

The Moving Average Convergence Divergence (MACD) indicator has moved into the neutral zone, suggesting a fading bullish momentum. 

At the same time, the Relative Strength Index (RSI) hovers just above 50, hinting at modestly improving momentum. 

If this momentum resumes, XRP could extend gains above $1.40 and $1.45 as the next upside objectives.

Currently, XRP is facing stiff resistance around its 50-day Exponential Moving Average (EMA) at $1.42.

A sustained break above this threshold would be needed to ease near-term pressure at $1.45.

An extended rally would pave the way toward the 100-day EMA near $1.58, and the 200-day EMA around $1.84.

However, if the $1.42 resistance holds in the near term, the sellers will regain control, and XRP will find immediate support at $1.32.

A break below this support level would expose the $1.28 area, with the $1.25 support signalling the potential of a deeper retracements in the medium term.