While most leading crypto-based exchange-traded funds (ETFs) recorded significant outflows last week, XRP investment products went against the flow and attracted more than $80 million in inflows, ending the week with a green performance.
Related reading
XRP ETFs steal the spotlight
XRP ETFs continue to show strong demand, posting a 25-day streak last Friday and ending the week with positive net flows. Crypto investment products in particular had a negative performance last week, with outflows of almost a billion dollars.
According to the CoinShares weekly reportDigital asset-based funds ended the week in the red for the first time in four weeks, with outflows totaling $952 million. This marks the fourth worst weekly performance of the year for the products.
James Butterfill, head of research at CoinShares, suggested that the negative market reaction was fueled by the delays in the US Crypto Market Structure Act, which was initially expected to be passed before the end of the year.
This “has extended regulatory uncertainty for this asset class, alongside concerns about continued selling by whale investors,” the report said. Negative market sentiment was mainly concentrated in the US, where outflows of $990 million were recorded last week.
Ethereum (ETH) funds experienced the largest outflows, recording $555 million in negative net flows. Meanwhile, Bitcoin (BTC) investment products came in second with outflows of $460 million.
On the contrary, XRP ETFs saw general support throughout the week with positive net flows. According to SoSoValue factsthe category ends the week with inflows of $82.04 million, marking a positive six-week streak.
XRP correction already over?
Amid this performance, XRP’s price also ended the week recovering from the latest market correction, which sent the price to a two-month low of $1.77. Market observer BitGuru confirmed that XRP has completed its downtrend and liquidity grab and is currently stabilizing in a key historical demand zone.
According to the analyst, “the selling pressure fades, the structure flattens, and this is where smart money usually starts to position itself, not where panic sets in.” This also applies to trader Niels suggested that XRP’s corrective phase may be over as it appears to be forming a double bottom pattern.
“RSI has already bottomed, and now the price is also showing good signs,” the trader confirmed, adding that “XRP had a fakeout below the support level before reclaiming the zone.”
According to Niels, if the market shows momentum, the cryptocurrency could rise 20%-25% towards the $2.30-$2.50 area in the coming weeks. Recently, the trader confirmed that once XRP breaks above the $2.20 resistance, where the neckline of the pattern is located, it could rise to the $2.80-$3.00 area within a month.
Related reading
Meanwhile, analyst ChartNerd says marked a bullish divergence on the XRP chart. “Price action is holding to the lower low price action trendline while forming higher lows on the RSI,” he explained, suggesting that price could move to higher levels.
He also noted that if the altcoin fails to break the 20 EMA, currently around the $1.98 level, the price would “simply snap back to the lower low trendline for support, where we are likely to see more relief.”
At the time of writing, XRP is trading at $1.93, up 1.1% on the weekly time frame.
Featured image from Unsplash.com, chart from TradingView.com