XRP eyes $2.3 as bulls defend the $1.9 support: Check forecast

XRP, the native coin of the Ripple ecosystem, is one of the best performers among the top 10 cryptocurrencies by market cap.

The coin is up 3% in the last 24 hours and is now trading above $2.10.

It could rally higher in the near term as institutional demand for XRP spot exchange-traded funds (ETFs) continues to increase.

Spot XRP ETFs continue to attract more institutional investors

XRP defended the $1.9 support level over the weekend and is now trading above $2.1, up 3% in the last 24 hours.

The positive performance comes as the institutional demand for spot XRP ETFs continues to surge.

According to data obtained from SoSoValue, XRP ETFs recorded $230.74 million in inflows, marking their fourth consecutive positive week.

Thanks to the inflow, the ETFs have pulled in a cumulative $1 billion since they were launched a month ago. This is the fastest early adoption pace for any altcoin ETF.

Institutional demand for XRP funds remains strong despite the poor retail demand.

The poor retail demand contributes to the current market conditions, with traders still adopting risk-off sentiment regarding the cryptocurrency.

While the retail traders remain mute at the moment, large players continue to accumulate as they seek to take advantage of the short-term weakness in the price action. 

Currently, XRP's macro environment remains dominated by capital rotation into regulated products, with ETF demand balancing the declining open interest in derivatives markets.

XRP eyes $2.3 as the weekly candle opens bullish

The XRP/USD 4-hour chart is bearish and inefficient as the coin is still trading below the FVG on the 4-hour timeframe, around $2.7.

At press time, XRP is trading at $2.09, bouncing back from the $1.9 support level that was tested on Sunday. 

The coin could rally higher in the near term, thanks to the strong support level, with the resistance level above $2.2 an obvious target for the bulls.  

The Relative Strength Index (RSI) of 54 is above the neutral 50, indicating that the bulls have regained control of the market.

Furthermore, the Moving Average Convergence Divergence (MACD) indicator on the 4-hour timeframe is closing in on the positive territory, suggesting a fading bearish narrative. 

If the bullish recovery continues, XRP could rally past the $2.2 resistance level and trade above $2.3 for the first time since November 17.

The next major resistance level stands at $2.47. 

The market performance over the next few hours could depend on the upcoming FOMC meeting on Wednesday. 

However, if the recovery fails, the key support for XRP at $1.90 could be retested.

Failure to defend this support level could bring the November 21 low of $1.81 into focus.