XRP leads crypto rally: can bulls push price beyond $1.50 next?

Bitcoin (BTC) and Ether (ETH) are in the green as the broader cryptocurrency market recovers from yesterday’s dip.

BTC is trading above $76,000, while Ether has reclaimed the $2,300 level.

XRP, the native coin of the Ripple ecosystem, is also not left out. It is up by 2.5% in the last 24 hours, making it the best performer among the top 10 cryptocurrencies by market cap.

XRP is currently trading above a key resistance level after finding support around the $1.390 zone on Monday.

Strengthening on-chain activity, improving derivatives data, and bullish momentum indicators collectively support a positive outlook for the altcoin, setting the stage for a potential upside move.

On-chain and derivatives data show a bullish bias

XRP has outperformed other major cryptocurrencies in the last 24 hours and could rally higher in the near term.

At press time, XRP is trading at $1.44, with the bulls eyeing the $1.50 psychological level over the next few hours or days.

CryptoQuant summary data suggests a neutral to bullish outlook for XRP.

XRP’s spot markets show large whale orders and cooling conditions, with mostly neutral conditions across other metrics, suggesting a potential upside move. 

The derivatives data also suggests that retail traders have increased their participation in the market. XRP’s funding rate has turned bullish. 

CoinGlass’ OI-Weighted Funding Rate for XRP flipped to a positive rate last week and has remained there, currently at 0.0003% on Tuesday.

This positive rate indicates that longs are paying shorts and that sentiment is bullish.

The futures Open Interest (OI) now reads $2.62 billion, up from the $2.45 billion recorded on Monday. 

In addition to the positive derivatives data, institutional demand for XRP has also been growing. 

CoinGlass’s ETF page reveals that spot XRP ETFs recorded an inflow of $3.1 million on Monday, after the $13.63 million reported on Friday.

If the ETF inflows intensify, XRP could rally higher in the near term.

XRP technical outlook: Momentum indicators show bullish signals

Similar to BTC and ETH, the XRP/USD 4-hour remains bearish and efficient despite the recent rally. 

XRP price is trading at $1.44 on Tuesday after closing above the key 50-day Exponential Moving Average (EMA) at $1.41 the previous day.

The momentum indicators suggest that XRP’s price could rally higher in the near term.

The Relative Strength Index (RSI) on the 4-hour chart is around 56, and a positive Moving Average Convergence Divergence (MACD) reading suggests mildly constructive momentum.

The improvements in the momentum indicators are not sufficient to negate the prevailing downtrend defined by the higher 100-day and 200-day EMAs and the descending channel.

If the rally persists, initial resistance would be met at the 100-day EMA near $1.54, followed by the next major one at $1.65. 

A daily candle close above these levels would expose the 200-day EMA at $1.78 and the horizontal barrier at $1.90 in the medium term.

However, if the market undergoes a correction, immediate support is provided by the 50-day EMA at $1.41. 

A daily candle break below this level would expose the horizontal floor at $1.30, with a strong demand level also seen at $0.83.