- 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.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.