XRP ETFs Absorb 80 Million Tokens: Is a New Bull Trend Emerging for the Altcoin?

Summary: XRP has recently seen significant interest with newly launched exchange-traded funds (ETFs) absorbing nearly 80 million tokens, raising total assets under management to $778 million. This influx indicates a potential bullish trend for XRP, despite its current bearish technical indicators.

Key Takeaways

On launch, Grayscale and Franklin Templeton’s XRP ETFs attracted nearly $130 million.
Continuous ETF inflows, rather than just initial demand, will shape XRP’s future price recovery.
XRP has formed a bullish flag pattern, but it is still trading below key exponential moving averages (EMAs), indicating a bearish trend overall.

XRP ETFs absorb 80M tokens: Is a new bull trend starting for the altcoin?

XRP ETF Launch Sparks Optimism for Ongoing Demand

On November 24, the launch of Grayscale’s GXRP and Franklin Templeton’s XRPZ saw a combined absorption of $130 million. This led to total assets for XRP ETFs exceeding $628 million on that day, alongside nearly 80 million XRP tokens being absorbed within a 24-hour period. This performance outstripped the early inflows seen during Solana’s recent ETF debut, occurring amidst Bitcoin outflows.

XRP ETF tracker. Source: XRP Insight

At present, there are four XRP ETFs active in the market, with Canary’s XRPC on Nasdaq leading with $331 million in net inflows, followed by Bitwise’s XRP ETF at $168 million. Rapid demand for these ETFs is crucial because it affects the circulating supply of XRP. Continued inflows are necessary to secure XRP’s long-term advantages.

XRP supporter Chad Steingraber expressed optimism, stating, “each share is 10 to 20 XRP… a significant bump for the share price.” He pointed out that ongoing inflows could lead to a surge in trading volumes driven by fear of missing out (FOMO) and may position the ETF as a key player in influencing market dynamics.

The XRP ETF frenzy is expected to persist, with speculation about the launch of 21Shares’ TOXR on November 29 on Cboe BZX, following its S-1 and Form 8-A approvals. This new product aims to raise $500,000 in seed capital and carries a 0.50% fee, enhancing exposure to US spot XRP.

XRP’s Bull Flag is Key to Breaking Resistance at $2.20

Currently, XRP stands out among the top ten cryptocurrencies, showing a 5% recovery from a recent low of $1.90 to the critical resistance level of $2.20. On the four-hour chart, XRP appears to be forming a bullish flag, with potential breakout targets set around the $2.35 to $2.45 sell-side fair value gap (FVG), while also aiming to sweep liquidity at $2.30 and $2.35.

XRP four-hour chart. Source: Cointelegraph/TradingView

However, failing to break above $2.20 could increase the chances of a pullback to the $2.10 to $2.00 buy-side FVG, where key liquidity resides. This leaves the current market sentiment in a state of uncertainty regarding its immediate directional trend.

The Relative Strength Index (RSI) remains above 50, suggesting strong short-term buying interest; however, the broader trend remains bearish as XRP continues to trade below the 50, 100, and 200 exponential moving averages (EMAs) on the four-hour chart.

Related: Grayscale’s Spot Dogecoin ETF Falls Short of Volume Expectations on Debut