XRP ETF Inflows Surpass $756M, Indicating Potential Trend Reversal

XRP ETF inflows exceed $756M as bullish divergence hints at trend reversal

Summary: Spot XRP exchange-traded funds (ETFs) have recorded significant inflows, highlighting institutional interest. With over $756 million in total inflows and emerging bullish trends in price indicators, there’s speculation about the XRP price maintaining its standing above $2 and possibly attaining a sustained recovery.

Key Takeaways:

XRP ETFs have garnered over $756 million in inflows since their launch.
A bullish divergence in the RSI and a buy signal from the TD Sequential indicator are becoming evident.
For XRP to pave the way to $3, it needs to surpass the $2.20-$2.50 range.

Strong XRP ETF Inflows Generate Optimism

Recent data from SoSoValue indicates that U.S.-based spot XRP ETFs added $89.65 million on Monday, bringing total inflows to $756 million. This consistent rise points to a strong ongoing demand from institutional investors. Since their introduction on November 13, these ETFs have experienced inflows each day, resulting in total assets under management (AUM) of $723 million.

XRP ETFs inflows. Source: SoSoValue

Currently, there are four operational XRP ETFs, with Canary’s XRPC on Nasdaq commanding attention and leading with $350 million in cumulative net inflows, followed closely by Bitwise’s XRP ETF, which has attracted $170 million. Over the past eleven days, approximately 330 million XRP tokens have been acquired, surpassing Solana ETF inflows, even as Bitcoin ETF inflows remain smaller in comparison.

Growing Demand Reflected in Record ETP Inflows

Additionally, global XRP exchange-traded products (ETPs) witnessed the most significant inflows ever, amounting to $289 million last week, further illustrating persistent institutional demand. According to James Butterfill, CoinShares’ head of research, the renewed interest in XRP is linked to the recent launch of U.S. exchange-traded funds like Canary Capital’s XRP ETF.

Vanguard, the global investment management giant managing $11 trillion in assets, is also gearing up to offer crypto ETFs, including XRP, to its more than 50 million clients starting Tuesday—marking a shift from its previous resistance to digital assets.

🔥 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 — Cointelegraph (@Cointelegraph)

XRP’s Bullish Divergence Signals Increasing Momentum

In conjunction with the solid inflows into spot ETFs, XRP’s price recovery appears bolstered by a budding bullish divergence between the relative strength index (RSI) and XRP's price on the daily chart. Analyst ChartNerd remarked, “$XRP is building a strong bullish divergence on the daily time frame, which has grown in strength during the slow grind down for over 55 days since the liquidation event.”

XRP/USD daily chart. Source: ChartNerd

A bullish divergence denotes a scenario where prices hit lower lows while the RSI posts higher lows, often signaling a weakening bearish trend and a potential reversal. This can encourage traders to buy during dips as interest from investors rises and seller fatigue manifests.

Simultaneously, the TD Sequential indicator is generating a buy signal on XRP's weekly chart. As evidenced since mid-2021, each indication to buy has preceded rallies in the XRP/USD pair ranging from 37% to 174%.

XRP/USD weekly chart. Source: Cointelegraph / TradingView

This TD Sequential indicator, a tool for identifying short-term trend reversals based on shifts in intraday highs and lows, suggests that XRP’s price could potentially surge from current levels, with forecasts indicating a rise of up to 174%, targeting around $5.60.

However, it’s essential for XRP to overcome resistance situated at the $2.20 to $2.50 range, which coincides with the 50-week simple moving average (SMA). As reported by Cointelegraph, should XRP prices bounce sharply from the support level at $2 and climb above the 20-day exponential moving average (EMA) of approximately $2.18, the momentum could carry the price up to the 50-week SMA and eventually reach the psychological milestone of $3.