XRP, the seventh largest cryptocurrency by market cap, has recently witnessed a staggering 600% surge in inflows. This notable influx comes at a time when the broader market is grappling with uncertainty, making XRP’s performance even more notable.
XRP, the seventh largest cryptocurrency by market capitalization, has recently witnessed a staggering 600% increase in inflows. This notable influx comes at a time when the broader market is grappling with uncertainty, making XRP’s performance even more notable.
According to the most recent CoinShares According to the report, digital asset investment products surged for the first time in five weeks, with inflows totaling $130 million.
Bitcoin received $144 million in inflows, recovering from a dismal month so far. XRP had $0.6 million in inflows compared to zero inflows the previous week, resulting in a 600% increase. The increase in XRP inflows remains impressive, given that the performance of altcoins was mixed, and Ethereum witnessed significant outflows.
Low participation by US regulators in Ethereum ETF issuer applications has dampened expectations of an ETF launch, as evidenced by outflows of over $14 million for Ethereum.
Market uncertainty persists
In recent weeks, the cryptocurrency market has been characterized by increased volatility and declining investor sentiment. This week, three major economic releases could even spark more volatility.
Traders prefer rising markets over range-bound ones. When there is ambiguity regarding the next directional move, traders may take a step back, which appears to be the situation at the moment.
On-chain analytics firm Santiment signals “fear and indecision” as Bitcoin on-chain activity falls to all-time lows. Traders have drastically slowed down transactions, but this is not necessarily a sign of further price declines.
In the case of XRP, which has been declining steadily since hitting a high of $0.57 on May 6, the price appears to be range-bound.
A recently formed death cross adds to the speculation on XRP price action. Therefore, the first indicator of XRP price strength would be a break above the 50 and 200 moving averages. In this sense, a new uptrend could target the $0.642 and $0.662 levels.
On the other hand, selling in the cryptocurrency market can take the price of XRP to $0.46, where support is expected.
