XRP ETFs Defy Market Downturn, Eye Key Resistance Levels Amidst Strong Inflows

While the broader cryptocurrency market faced significant headwinds last week, XRP-based Exchange-Traded Products (ETPs) have emerged as a beacon of resilience, extending an impressive 25-day streak of positive inflows. This remarkable performance underscores a growing investor confidence in XRP, even as other major digital assets registered substantial outflows.

XRP ETFs Steal The Spotlight

According to a weekly report from CoinShares, the digital asset investment product sector concluded the week in the red for the first time in four weeks, experiencing its fourth-worst weekly performance of the year with total outflows nearing $952 million. This market reaction was largely attributed by CoinShares' Head of Research, James Butterfill, to the prolonged regulatory uncertainty surrounding the delayed US crypto market structure bill. Ethereum (ETH) funds bore the brunt of the selling pressure, registering $555 million in negative net flows, while Bitcoin (BTC) investment products followed closely with $460 million in outflows. In stark contrast, XRP ETPs garnered $82.04 million in inflows, marking a robust six-week positive streak and showcasing consistent investor support.

XRP's Correction Already Over?

Amidst this influx of capital, XRP's price has also shown encouraging signs of recovery. Following a recent market correction that drove its value to a two-month low of $1.77, XRP has begun stabilizing around a crucial historical demand zone. Market observer BitGuru affirmed that XRP appears to have completed its downtrend and liquidity grab, noting that "selling pressure is fading, structure is flattening, and this is where smart money usually starts positioning, not where panic happens." Similarly, trader Niels suggested that XRP's corrective phase might be over, with the formation of a double bottom pattern indicating potential upside. Adding to the bullish sentiment, analyst ChartNerd highlighted a bullish divergence on XRP's chart, where price action adheres to a lower low trendline while the Relative Strength Index (RSI) forms higher lows. This technical signal often precedes a price rebound. Analysts project that if XRP can break above the $2.20 resistance level—the pattern’s neckline—it could rally significantly, potentially reaching the $2.80-$3.00 area within a month. In the shorter term, a surge of 20%-25% towards the $2.30-$2.50 range is anticipated if market momentum continues to build. As of writing, XRP is trading at $1.93, reflecting a 1.1% increase in its weekly timeframe.