While most leading crypto-based Exchange-Traded funds (ETFs) recorded significant outflows last week, XRP investment products went against the current and attracted over $80 million in inflows, ending the week with a green performance.
Related Reading
XRP ETFs Steal The Spotlight
XRP ETFs continue to show strong demand, recording a 25-day streak last Friday and closing the week with a positive net flow. Notably, crypto investment products registered a negative performance last week, seeing nearly a billion dollars in outflows.
According to CoinShares’ weekly report, digital asset-based funds ended the week in the red for the first time in four weeks, with outflows totaling $952 million. This marks the products’ fourth-worst weekly performance of the year.
CoinShares’ Head of Research, James Butterfill, suggested that the negative market reaction was fueled by the delays in the US crypto market structure bill, which was initially anticipated to be passed before the end of the year.
This “has prolonged regulatory uncertainty for the asset class, alongside concerns over continued selling by whale investors,” the report noted. The negative market sentiment was mostly focused in the US, which recorded $990 million in outflows last week.
Ethereum (ETH) funds suffered the largest outflows, registering $555 million in negative net flows. Meanwhile, Bitcoin (BTC) investment products came in second with $460m in outflows.
On the contrary, XRP ETFs saw overall support with positive net flows throughout the whole week. According to SoSoValue data, the category closes the week with $82.04 million in inflows, marking a 6-week positive streak.
XRP’s Correction Already Over?
Amid this performance, XRP’s price also ended the week recovering from the latest market correction, which sent its price to a two-month low of $1.77. Market observer BitGuru affirmed that XRP has completed its downtrend and liquidity grab, and is currently stabilizing at a key historical demand zone.
Per the analyst, “selling pressure is fading, structure is flattening, and this is where smart money usually starts positioning, not where panic happens.” Similarly, trader Niels suggested that XRP’s corrective phase may be over as it appears to be forming a double bottom pattern.
“RSI has bottomed out already, and now the price is showing good signs too,” the trader affirmed, adding that “XRP had a fakeout below the support level before reclaiming the zone.”
To Niels, if the market shows momentum, the cryptocurrency could surge 20%-25% toward the $2.30-$2.50 area in the next few weeks. Recently, the trader affirmed that once XRP breaks above the $2.20 resistance, where the pattern’s neckline is situated, it could rally to the $2.80-$3.00 area within a month.
Related Reading
Meanwhile, analyst ChartNerd highlighted a bullish divergence on XRP’s chart. “Price action is adhering to the lower low price action trendline whilst forming higher lows on the RSI,” he explained, suggesting that price could move to higher levels.
He also noted that if the altcoin fails to break the 20 EMA, currently around the $1.98 level, the price would “simply resort back to the lower low trendline for support, where we likely see more relief.”
As of this writing, XRP is trading at $1.93, a 1.1% increase in the weekly timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
Credit: Source link
