XRP, the seventh-largest cryptocurrency by market cap, has recently witnessed a staggering 600% surge in inflows. This remarkable influx comes at a time when the broader market is grappling with uncertainty, making XRP’s performance all the more noteworthy.
According to the most recent CoinShares report, digital asset investment products rose for the first time in five weeks, with inflows totaling $130 million.
📊 After four weeks of outflows, digital asset investment products saw inflows of US$130m. #BTC experienced inflows of US$144m. The majority of global inflow is from the US, at US$135m.
Get our insights in our full report as well as more data: https://t.co/ocQo7dfqsz pic.twitter.com/VQb9lcqZHX
— CoinShares (@CoinSharesCo) May 13, 2024
Bitcoin received $144 million in inflows, recovering from a dismal month thus far. XRP had $0.6 million in inflows compared to the previous week’s zero inflows, resulting in a 600% increase. The spike in XRP inflows remains impressive, given that altcoin performance was a mixed basket, with Ethereum witnessing significant outflows.
Low involvement by U.S. regulators with Ethereum ETF issuer applications has decreased expectations for an ETF launch, as seen by outflows of over $14 million for Ethereum.
Market uncertainty persists
In recent weeks, the cryptocurrency market has been marked by increased volatility and waning investor sentiment. This week, three important economic releases could even spark more volatility.
Traders prefer surging markets over range-bound ones. When there is ambiguity regarding the next directional move, traders may take a step back, which appears to be the situation right now.
On-chain analytics firm Santiment points out “fear and indecision” as Bitcoin’s on-chain activity plummets to historic lows. Traders have dramatically slowed transactions, but this might not necessarily be a sign of further price dips.
In the case of XRP, which has been steadily declining since peaking at $0.57 on May 6, the price appears to be constrained to a range.
A recently formed death cross adds to the speculation around XRP price behavior. Thus, the first indicator of strength for the XRP price would be a break above the moving averages of 50 and 200. In this regard, a new bullish trend might target the $0.642 and $0.662 levels.
On the other hand, selling in the crypto market may drive the XRP price to $0.46, where support is expected.
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