Is XRP's 2% rally the beginning of a much bigger breakout move?

The cryptocurrency market has been trading sideways over the past few hours, but some leading coins have been bullish.

Solana (SOL) and Ripple (XRP) are the best performers among the top 10 cryptocurrencies by market cap. 

XRP maintains a neutral-to-bullish tone, trading above $1.43 at the time of writing on Friday, supported by renewed institutional and retail interest.

It briefly hit the $1.46 level before retracing to now trade around $1.433. A steady price increase could accelerate XRP toward the next resistance levels at $1.50 and $1.55.

XRP could rally higher on growing institutional and retail interest

XRP is up by nearly 2% in the last 24 hours as institutional investors are showing renewed interest in digital investment products.

US-listed XRP spot Exchange-Traded Funds (ETFs) recorded approximately $12 million in inflows on Thursday, after recording $17 million the previous day. 

Cumulative inflows currently stand at $1.25 billion, with net assets under management averaging $1.02 billion.

If inflows into the spot ETFs continue, prices could steadily increase, with XRP surging toward the $1.50 psychological level.

In addition to the growing institutional interest, retail has also expanded so far this week.

The Open Interest (OI), reflecting the notional value of outstanding futures and options contracts, rose to $2.67 billion on Friday from $2.58 billion the previous day. 

The return of retail investors, albeit gradual, suggests growing conviction in XRP’s ability to sustain upward price action in the short- to medium-term.

Technical outlook: XRP bulls eye $1.50 psychological level

The XRP/USD 4-hour chart is one of the most interesting ones among the top 10 cryptocurrencies.

It is trading above $1.43, above the 50-day Exponential Moving Average (EMA) and the 50.0% Fibonacci retracement at $1.3946.

Despite its rally, XRP remains well below the 100-day EMA at $1.55 and the 200-day EMA at $1.80, keeping the broader bias bearish.

The momentum indicators are showing signs of a growing bullish narrative.

The Relative Strength Index is at 65 on the 4-hour chart, and a positive Moving Average Convergence Divergence (MACD) histogram hints at improving bullish momentum. 

However, XRP would need to overcome the higher EMAs and Fibonacci levels in the near term to enable it to rally higher over the coming days and weeks. 

A daily candle close above the 100-day EMA at $1.55 would allow XRP to recapture the $1.80 resistance level for the first time since January 30th. 

On the downside, initial support is seen at the 50-day EMA around $1.41.

A break below this resistance level would see XRP retest the 50.0% Fibonacci retracements near $1.39. 

Failure to defend this level would expose the 38.2% Fibonacci retracements at $1.33 and the prior trendline break area around $1.31.

The 23.6% Fibonacci retracements at $1.25 would act as a stronger demand zone in the medium term.