Spot XRP (XRP) exchange-traded funds have maintained strong investor interest, accumulating nearly $1 billion in inflows since their inception. Unfortunately, this surge hasn’t enabled bulls to keep prices above the vital $2 support level.
Key takeaways:
Spot XRP ETFs experienced inflows for 20 consecutive days, totaling $1.2 billion.
XRP’s price continued its downtrend, falling below an important moving support level.
Spot XRP ETFs accumulate $1 billion in inflows over three weeks
US-based spot XRP ETFs have logged inflows for 20 straight days, showcasing institutional interest in the native asset of the network.
According to data from SoSoValue, XRP ETFs gained $20.2 million on Friday, bringing total inflows to $990.9 million and overall assets to over $1.2 billion. The Franklin XRP ETF (XRPZ) led with $8.7 million in inflows on Friday, raising its net assets to $175 million.
Related: XRP buy signal appears as funding rate turns significantly negative: Will bulls take action?
The Bitwise XRP ETF (XRP) and Canary XRP ETF (XRPC) were the only other products to register inflows on Dec. 12, while the Grayscale XRP Trust ETF (GXRP) and 21shares XRP ETF (TOXR) saw no inflows.
This robust beginning for XRP ETFs indicates high confidence among institutional investors. In contrast, spot Bitcoin (BTC) ETFs recorded $49 million in inflows on the same day.
Spot Ether (ETH) ETFs reported $19.4 million in outflows, diminishing their cumulative inflows to $13.1 billion. The funds also experienced a loss of $42.3 million on Thursday.
“US spot $XRP ETFs have now documented 20 consecutive days of inflows since launch, even while $BTC and $ETH ETFs continue facing outflows,” noted analyst Bitcoinsensus in a Monday post on X, adding:
“Institutional demand for XRP is growing rapidly.”
As Cointelegraph reported, the robust demand for XRP ETFs supports a bullish outlook for the altcoin, with a potential rally to $10 still possible by 2026.
XRP price breaks below critical support levels
Despite the ongoing demand for XRP ETFs, the price has failed to remain above $2, with technical conditions suggesting a deeper correction may be forthcoming.
XRP’s price has continued its bearish trend on Monday, declining over 11% in the past 10 days and falling below $2 for the second time since November 21.
The XRP/USDT pair is currently testing a daily order block near $1.93, a level with minimal support, according to data from Glassnode.
Glassnode’s UTXO realized price distribution (URPD), which indicates the average purchase prices for SOL holders, shows fewer buy clusters below $1.90. This implies fewer holders are likely to support the price there.
The next crucial support level is at $1.78, where around 1.85 billion XRP were previously bought.
If the price goes below this level, it might fall towards the green zone illustrated below, supported by the $1.61 local low and the 200-week exponential moving average (EMA), which is around $1.40 and serves as the last line of defense for the XRP price.
XRP’s downside momentum is also intensifying based on the relative strength index, or RSI, which has reached its lowest point since July 2024.
As Cointelegraph noted, if the price falls below $2, the XRP/USDT pair could further decline to $1.75 and then to the local low at $1.61.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
