- The resurgence of the XRP currency is supported by continuous inflows from exchange-traded funds:

The Ripple (XRP) currency gained momentum on Monday, with its price surpassing $1.15 amid a general recovery in the cryptocurrency market. This recovery comes amid a decrease in geopolitical tensions in the Middle East, following reports that the United States and Iran made progress in the first round of talks aimed at reaching a permanent peace agreement.

Although the two countries agreed on an initial framework aimed at reaching a final agreement within 60 days, Israeli attacks on Lebanon may complicate the current ceasefire.

Meanwhile, U.S. President Donald Trump warned Iran against "sparing its mercenary clients in Lebanon from causing trouble." Trump added: "If they don’t do that, we will strike Iran hard again, just like we did last week, but with greater force!"

- XRP continues to attract institutional interest:
Institutional investors interested in investing in cryptocurrencies through exchange-traded funds (ETFs) have steadily increased their investments in XRP over recent weeks. According to SoSoValue, XRP ETF funds have recorded net inflows for the seventh consecutive week.

Inflows reached $11 million last week. The total inflows amount to $1.45 billion, while the average net assets under management stand at $995 million.

Although the inflows were moderate, the ongoing demand for US-listed spot XRP ETFs indicates that institutional investors maintain a positive outlook on XRP’s potential to recover in the short to medium term.

XRP ETF inflows | Source: SoSoValue
"Focus remains on regulation, payment adoption, and investor sentiment toward alternative currencies in general. The Federal Reserve indicates that interest rates will stay high for a longer period, which has greater implications for investor confidence," said Anil Onko, CEO of Bitpace.

The widening scope of the XRP derivatives market points to a bleak picture, as open interest in futures contracts fell to $2.55 billion on Monday, down from $2.63 billion the previous day. This decline is minor compared to the record $10.94 billion set in July, indicating reduced risk appetite. Market participants remain hesitant to open new long positions.

Daily trading data for XRP futures | Source: CoinGlass
Onko adds that investors are finding it difficult to confidently price risky assets, "as liquidity remains limited, with ongoing uncertainty about the future path of interest $XRP rates."