- Scale provides the solution.
- XRP’s price performance
On June 9, XRP spot ETFs outperformed other major cryptocurrency investment products, drawing $7.44 million in net inflows, while Ethereum and Bitcoin funds saw large outflows.
The most recent ETF flow data shows that XRP products generated $7.44 million, easily surpassing Solana ETFs, which drew about $794,000. Spot ETFs for Bitcoin lost $77.44 million, while Ethereum products saw a $40.85 million withdrawal from the market.
This appears to be bullish for XRP. After all, investors are lowering their exposure to the two biggest cryptocurrencies, while money is moving into XRP-based investment vehicles. However, the token itself is still having difficulties. It is currently trading close to $1.11 following a significant breakdown from a multi-month consolidation pattern.
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Scale provides the solution.
Although $7.44 million is encouraging, it is still small in relation to the total market capitalization and daily trading volume of XRP. Although the inflows show investor interest, they are insufficient to immediately counteract the general market selling pressure that is currently affecting riskier assets in the cryptocurrency industry.
This reality is depicted in the chart. After completing a bearish breakdown from a descending triangle formation that had been forming since March, XRP recently lost a crucial support zone around $1.28-$1.30. Sellers pushed the asset toward the $1.10 area after support failed.
XRP’s price performance
As of right now, XRP is watching its 50-, 100-, and 200-day moving averages from below. These levels, which are presently grouped between about $1.25 and $1.40, are still a major barrier.
Nonetheless, there are some positive indications. It appears that bearish momentum may be coming to an end because the Relative Strength Index has entered oversold territory close to the 30 level. The recent sell-off, which frequently coincides with capitulation events and the creation of local bottoms, also saw a spike in volume.
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An early look at what institutional investors are doing during the correction may be possible thanks to ETF data. Instead of giving up on XRP, money keeps going into specialized XRP investment products despite outflows from the larger market. That implies that demand is still present below the surface, but it does not ensure an immediate recovery.
The market is currently sending conflicting signals: while the spot market is still dominated by technical weakness, institutions seem eager to increase their exposure to XRP through ETFs. XRP may be among the first assets to profit from fresh buying pressure if ETF inflows continue to rise and overall cryptocurrency sentiment improves.