- XRP funds see rise in capital inflows from institutions last week, according to CoinShares digital asset fund flow report.
- SEC appeal and 1 billion token unlock are other key market movers for the altcoin.
- XRP trades at $0.5430, gaining nearly 2% on Monday.
Ripple (XRP) price on Monday is being influenced by the token unlock on October 1, XRP fund flows and sentiment among crypto market participants. XRP gains nearly 2% on the day, the altcoin trades above key support at $0.5200.
Daily Digest Market Movers: XRP funds sees rise in capital inflow
- CoinShares Digital Asset Flows Report shows XRP-based funds received $300,000 in capital inflows last week.
- In the same time frame, the two largest assets by market capitalization noted negative flows: Bitcoin recorded a $159 million in outflows, and Ethereum funds lost $28.9 million.
Fund flows by asset
- The rising capital inflows to XRP is indicative of demand among institutional investors.
- XRP traders are watching the developments in the Securities & Exchange Commission’s (SEC) lawsuit appeal against the payment remittance firm.
- The SEC appealed against the final ruling, which imposed a $125 million fine on Ripple for the institutional sale of XRP tokens.
- Another factor influencing the asset is the 1 billion XRP token unlock, part of a scheduled token release by the payment firm. The release of a large volume of XRP tokens during each unlock negatively influences the asset’s price.
Technical analysis: XRP could extend losses by another 7%
Ripple started its multi-month downward trend in July 2023, post the top of $0.9380. The altcoin is likely to extend losses by 7% and sweep liquidity at $0.5026, a key support level for XRP. This level coincides with the September 6 low.
The red histogram bars on the Moving Average Convergence Divergence (MACD) indicator signal an underlying negative momentum in XRP price.
XRP/USDT daily chart
If there is a daily candlestick close above the 200-day Exponential Moving Average at $0.5548, it could invalidate the bearish thesis. XRP could then attempt a recovery to $0.6000, the October 2 high and a psychologically important price level for the altcoin.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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