Spot XRP exchange-traded funds (ETFs) continue to attract investors, recording inflows for the 11th consecutive day, highlighting institutional demand. But is this enough to keep the XRP price above $2 and trigger a sustained recovery?
Key Points:
Since their launch, spot XRP ETFs have attracted over $756 million in inflows.
The RSI bullish divergence and TD Sequential indicator have issued buy signals.
XRP price must break through the $2.20-$2.50 range to clear the path to $3.
According to data from SoSoValue, the U.S. spot XRP ETF saw an inflow of $89.65 million on Monday, bringing the total inflows to $756 million, indicating strong institutional demand.
These ETFs have recorded daily inflows since their launch on November 13, pushing the total assets under management (AUM) to $723 million.
Currently, four XRP ETFs are live, with Canary's XRPC on Nasdaq leading with a cumulative net inflow of $350 million, followed by Bitwise's XRP ETF with $170 million.
In the past eleven days, nearly 330 million XRP tokens have been absorbed, surpassing the inflow of the Solana ETF and occurring against the backdrop of smaller inflows into Bitcoin ETFs.
Meanwhile, global XRP exchange-traded products (ETPs) recorded the largest inflow ever, attracting $289 million last week, reflecting ongoing demand from institutional investors.
CoinShares Research Director James Butterfill noted that the surge in XRP is attributed to the recent launch of U.S. exchange-traded funds (ETFs), such as the Canary Capital XRP ETF that debuted in mid-November.
Global investment management firm Vanguard, with $11 trillion in assets under management, is also expected to join this trend, allowing its over 50 million clients to trade cryptocurrency ETFs, including XRP ETFs, on its platform starting Tuesday.
🔥 HUGE: Vanguard now allows its clients to access crypto ETFs on its platform starting Tuesday, reversing its previous stance against digital assets. pic.twitter.com/fIhVNrC4ha
With the positive inflow of spot ETFs, the potential for XRP to rebound from current price levels has been further strengthened, primarily reflected in the bullish divergence formed between the daily Relative Strength Index (RSI) and XRP price.
Analyst ChartNerd noted in a post on X platform on Monday: "XRP is building a strong bullish divergence on the daily timeframe, and this signal has been strengthening during the slow decline of over 55 days since the liquidation event." He added:
Bullish divergence occurs when the price makes lower lows while the RSI forms higher lows, which typically indicates that downward momentum is weakening and a potential reversal is possible. This situation encourages traders to increase buying during price pullbacks, reflecting rising investor interest and exhausted selling pressure.
At the same time, as shown in the chart below, the TD Sequential indicator has issued a buy signal on XRP's weekly chart.
Since mid-2021, whenever this indicator has issued a buy recommendation, the XRP/USD pair has seen increases ranging from 37% to 174%.
The TD Sequential indicator is an oscillating trend-following chart overlay that assesses short-term trend reversals by analyzing changes in intraday highs and lows.
In the current scenario, the indicator predicts that XRP price could rebound from current levels, with a potential maximum increase of 174%, trading close to $5.60.
However, XRP price must first break through the strong resistance level in the $2.20 to $2.50 range, supported by the 50-week simple moving average (SMA).
According to Cointelegraph, if XRP price strongly rebounds from the $2 support line and breaks above the 20-day exponential moving average (EMA) at around $2.18, the pair could rise to the 50-week SMA level, subsequently testing the psychological level of $3.
Related: Cryptocurrency ETP ends four-week decline, attracting $1 billion inflow; Ripple (XRP) records best weekly performance
This article does not constitute any investment advice or recommendation. All investment and trading activities carry risks, and readers should conduct their own research before making decisions.
Original article: “Ripple (XRP) ETF inflows exceed $756 million, bullish divergence hints at trend reversal”
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