While most major cryptocurrency-based exchange-traded funds (ETFs) saw significant outflows last week, XRP investment products went against the grain and attracted over $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, recording a 25-day streak last Friday and closing the week with positive net flow. In particular, crypto investment products recorded a negative performance last week, with almost $1 billion in outflows.
According to the weekly CoinShares 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 products’ fourth-worst weekly performance of the year.
CoinShares head of research James Butterfill suggested that the negative market reaction was driven by delays to the US crypto market structure bill, which was initially anticipated to be passed before the end of the year.
This “has prolonged regulatory uncertainty for this asset class, along with concerns about continued selling by whale investors,” the report notes. The negative market sentiment was mainly focused on the United States, which recorded capital outflows worth $990 million last week.
Ethereum (ETH) funds suffered the largest outflows, recording $555 million in negative net flows. Meanwhile, Bitcoin (BTC) investment products took second place with $460 million in outflows.
In contrast, XRP ETFs saw overall support with positive net flows throughout the week. According to SoSoValue dataThe category closes the week with 82.04 million dollars in entries, marking a positive streak of 6 weeks.
Is the XRP correction over yet?
Amid this performance, XRP price also ended the week recovering from the latest market correction, which sent its price to a two-month low of $1.77. BitGuru, market watcher affirmed that XRP has completed its downtrend and liquidity capture, and is currently stabilizing in a key historical demand zone.
According to the analyst, “selling pressure is fading, the structure is flattening and this is where the smart money usually starts to position itself, not where panic arises.” Similarly, the merchant Niels suggested that XRP’s corrective phase may be over as it appears to be forming a double bottom pattern.
“The RSI has already bottomed and now the price is also showing good signs,” the trader stated, adding that “XRP had a fake below the support level before recovering the zone.”
For Niels, if the market shows momentum, the cryptocurrency could rise by 20% to 25% towards the $2.30 to $2.50 area in the coming weeks. Recently, the trader stated that once XRP breaks the $2.20 resistance, where the neckline of the pattern lies, it could rise to the $2.80-$3.00 area within a month.
Related reading
Meanwhile, analyst ChartNerd highlighted a bullish divergence on the XRP chart. “The price action is sticking to the lower price action trend line while forming higher lows on the RSI,” he explained, suggesting that the 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 will “simply turn to the lower trendline for support, where we will likely see more relief.”
At the time of writing, XRP is trading at $1.93, up 1.1% on the weekly period.
Featured image from Unsplash.com, chart from TradingView.com
