XRP‘s price saw a notable increase of 3.5% within the past 24 hours, continuing an upward trend spurred by a general recovery in the cryptocurrency market. This gain is part of a broader rebound that began on July 8, following a report by CoinShares on significant inflows into crypto funds. CoinShares highlighted an inflow of $441 million into crypto assets that week, even as the market suffered an 11.28% decline.
What’s Driving Ripple’s Momentum?
XRP-focused investment funds reported an inflow of $400,000 for the week ending July 5. Since then, the XRP/USD pair has appreciated by about 10%. CoinShares analyst James Butterfill attributed the inflows to investors viewing recent price weaknesses as buying opportunities, influenced by the selling pressures from Mt. Gox and the German Government.
Additionally, the broader crypto market and XRP saw inflows coinciding with Wall Street’s growing anticipation of a potential rate cut in September. This sentiment was prompted by weaker-than-expected job data released on July 5. XRP’s spot market returns have surged approximately 16% from its lowest point on that date, bolstered further by Federal Reserve Chairman Jerome Powell’s dovish remarks to Congress on July 10.
XRP Supply Dynamics and Technical Indicators
XRP’s recent gains also align with an increase in supply held by wealthy investor groups, specifically entities holding between 100 million and 1 billion tokens. Conversely, there was a decrease in supply held by those with 10 million to 100 million tokens. The supply held by addresses with over 1 billion tokens remained stable, suggesting increased confidence and investment from larger holders. Technically, XRP’s rise is part of an oversold bounce, a common reaction when an asset’s relative strength index (RSI) drops below 30.
Key Insights
- Increased investment in XRP-focused funds highlights growing investor confidence.
- Wall Street’s anticipation of a rate cut in September is influencing market dynamics.
- Significant inflows into crypto assets despite broader market declines indicate buying opportunities.
- XRP’s technical indicators suggest a potential oversold bounce, leading to short-term gains.
Additionally, XRP’s price climbed after testing the lower trend line of its current falling wedge pattern, similar to its performance in April. Should this pattern repeat, the next upward target for XRP in July is around $0.45, representing a 5% increase from its current price level near the wedge’s upper trend line.