Spot ETF Inflows Drive XRP Potential Breakout Toward $1.99 Target

• XRP is up 4.43% trading at $1.92, with trading volume of $4.39 billion.
• Six-week Spot ETF inflows lift XRP net assets to $1.14 billion, showing hidden bullish strength.
• XRP tests important level of $1.99; 20-day and 50-day EMAs merged, indicating possible breakout.

XRP is trading at $1.92 today, with a 24-hour trading volume of $4.39 billion, a market cap of $116.02 billion, and a market dominance of 3.89%. Over the past 24 hours, token’s price has climbed 4.43%, signaling early signs of recovery after weeks of sideways movement.

XRP Spot ETFs See Six-Week Inflows

According to ChartNerd, there have been six weeks of consecutive inflows to the Spot ETFs in the XRP market, causing the total net assets to rise to $1.14 billion. What is astonishing is that this increase in the net assets has been achieved at times when the price has been finding it difficult to move up, giving rise to what is known as the hidden bullish divergence in the market.

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XRP Tests Key $1.99 Resistance Level

As per the technical analysis, XRP was seen trending inside a descending broadening wedge, with the critical point of $1.99 being identified as the area to confirm the onset of the upward move. Token has managed to recover some of its lost territory, using the wedge as the point of support. The 20 and 50-day EMAs have already merged, and the critical point of passage has already been attained.

However, if XRP manages to successfully break back into the descending channel, the $1.99 level could be a strong source of resistance. Additionally, getting back to the 200-day EMA would be crucial for the formation of a bullish crossover. Failure to do so would mean that XRP continues with its choppy ride until an unequivocal buy signal from the markets.

Market sentiment is still cautious. Bitcoin continues receiving robust net inflows, but concerns over macroeconomic trends and continuous selling pressure ensure volatile cryptocurrencies. 

Bitcoin might experience some resistance in and around the $70k level and could fail to move past $90k without overcoming critical resistance levels. In the past, the first month of the year has, in some years, offered positive support, but token and the entire crypto-market might require new impulses for a smooth uptrend.

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