Despite most prominent crypto-based Exchange-Traded Funds (ETFs) experiencing notable outflows last week, XRP investment products defied this trend, garnering over $80 million in inflows and finishing the week positively.
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XRP ETFs Capture Attention
XRP ETFs have sustained robust demand, achieving a 25-day streak last Friday and concluding the week with a positive net inflow. In contrast, crypto investment products faced a challenging week, totaling nearly a billion dollars in outflows.
According to CoinShares’ weekly report, digital asset funds concluded the week in negative territory for the first time in four weeks, with outflows amounting to $952 million. This represents the fourth-worst weekly performance of the year for these products.
James Butterfill, Head of Research at CoinShares, indicated that the negative market sentiment was driven by delays concerning the US crypto market structure bill, which was previously expected to be enacted by year-end.
The report emphasized that this “has extended regulatory uncertainties for the asset class, coupled with worries over ongoing sales by whale investors.” Most of the negative sentiment originated in the US, which recorded $990 million in outflows last week.
Ethereum (ETH) funds suffered the largest outflows, recording a negative net flow of $555 million. Bitcoin (BTC) investment products followed closely behind, experiencing $460 million in outflows.
In contrast, XRP ETFs received consistent support with positive net inflows throughout the entire week. According to SoSoValue data, this category closed the week with inflows of $82.04 million, marking a six-week positive streak.
Has XRP’s Correction Ended?
Amid these developments, XRP’s price rebounded from a recent market correction that had driven it to a two-month low of $1.77. Market analyst BitGuru confirmed that XRP has finished its downtrend and liquidity testing phase, currently stabilizing at a significant historical demand zone.
The analyst noted, “selling pressure is diminishing, the structure is flattening, and this is typically where smart money begins to position itself, not where panic ensues.” Similarly, trader Niels indicated that XRP’s corrective phase might be concluding as it appears to be forming a double bottom pattern.
“RSI has already bottomed, and now price is displaying promising indicators too,” the trader stated, adding that “XRP experienced a false breakout below the support level before reclaiming that zone.”
According to Niels, if the market gains momentum, the cryptocurrency could surge by 20%-25% toward the $2.30-$2.50 range in the upcoming weeks. Recently, the trader commented that once XRP surpasses the $2.20 resistance, where the neckline of the pattern lies, it could potentially rally to the $2.80-$3.00 area within a month.
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Meanwhile, analyst ChartNerd pointed out a bullish divergence on XRP’s chart. “Price action is staying consistent with the lower low trendline while forming higher lows on the RSI,” he explained, indicating potential for upward price movement.
He also remarked that if the altcoin does not break the 20 EMA, currently around the $1.98 level, the price would “likely return to the lower low trendline for support, where we could see further relief.”
As of now, XRP is trading at $1.93, reflecting a 1.1% increase over the weekly period.
Featured Image from Unsplash.com, Chart from TradingView.com
