Why XRP Remains Stable Despite $1.2 Billion in ETF Demand

xrp

XRP has been experiencing a significant influx of investment, with spot ETFs totaling over $1.2 billion. However, despite this influx and growing interest from institutional investors and large holders, XRP's price remains relatively stable without sharp movements. This article explores the factors contributing to XRP's current market behavior.

Key Takeaways

XRP ETFs have attracted over $1.2 billion in total net assets, maintaining consistent inflows.
Despite positive trends, XRP's price is still hovering around $1.90, indicating gradual institutional buying rather than impulsive trading behavior.
Large holders, referred to as whales, have increased their XRP holdings, suggesting a shift in market control.
XRP's price is currently below essential exponential moving averages (EMAs), indicating a lack of a bullish trend.
Market momentum shows reduced selling pressure but also a lack of new buying demand.

Institutional Investments Impacting XRP

Recent movements show that institutional investments have significantly increased, with large wallets seeking to gain more control over XRP assets. Surprisingly, this surge in investment hasn't led to dramatic price changes, highlighting an intriguing market dynamic.

XRP

Source: SoSoValue

The Role of ETFs in XRP's Demand

Spot XRP ETF inflows have pushed the total net assets past the impressive mark of $1.2 billion. Even during quieter periods, there has been a steady inflow of interest. This consistent demand shows that it is not just a temporary spike in interest.

Whales Increasing Their Holdings

According to data from Santiment, wallets holding between 100 million and 1 billion XRP have started to increase their holdings again. This indicates a significant escalation in whale activity, with their supply now climbing back to around 12.8% after a slight decline earlier this month.

XRP

Source: Santiment

The increase in whale holdings has not been gradual. After a dip in mid-December, large holders have been actively accumulating more XRP, indicating they are strategically positioning themselves in the market. When whales buy alongside institutional inflows, it often indicates a shift in who controls the market.

XRP's Price Stability and Market Trends

As of now, XRP is trading at about $1.94, which is still below its crucial exponential moving averages (EMAs) for the 20, 50, 100, and 200-day periods. This suggests that the overall market trend has not yet transitioned into a bullish phase.

XRP Price Data

Source: TradingView

The signs of market hesitation are further confirmed by the momentum indicators. The Relative Strength Index (RSI) is around 43, showing mild recovery but no strong buying pressure. Additionally, the On-Balance Volume (OBV) has stabilized after a decline earlier this month, indicating that while selling pressure has diminished, new demand has not yet surfaced. The Moving Average Convergence Divergence (MACD) is also below zero, though the acceleration of downward momentum is beginning to slow.

Conclusion

In summary, XRP is experiencing a notable increase in institutional interest and whale activity, yet its price remains steady. As the market evolves, the potential for future price movements will depend on the ability of XRP to attract new demand and shift its current trading patterns. Investors should pay close attention to these factors in the coming weeks.