XRP, the seventh largest cryptocurrency by market capitalization, recently saw a staggering 600% spike in capital inflows. This notable outflow comes at a time when the broader market is grappling with uncertainty, making XRP's performance all the more remarkable.
According to CoinShares' most recent report, digital asset investment products increased for the first time in five weeks, with total inflows of $130 million.
Bitcoin received $144 million in inflows, recovering from a dismal month so far. XRP had inflows of $0.6 million compared to zero inflows the previous week, resulting in a 600% increase. The spike in XRP inflows remains impressive, as altcoin performance is a mixed basket, with Ethereum seeing significant outflows.
Low engagement by US regulators with Ethereum ETF issuance applications has dampened expectations for the ETF launch, as demonstrated by outflows of over $14 million to Ethereum.
Market uncertainty persists.
In recent weeks, the cryptocurrency market has been marked by increased volatility and weakened investor sentiment. This week, three important economic news could cause even more volatility.
Traders prefer surging markets to range-bound markets. When there is ambiguity about the next directional move, traders can take a step back, which seems to be happening right now.
On-chain analytics firm Santiment points to “fear and indecision” as Bitcoin's on-chain activity plummets to historic lows. Traders have slowed down significantly, but this may not necessarily be a sign of further price declines.
In the case of XRP, which has been steadily decreasing since peaking at $0.57 on May 6, the price appears to be range-bound.
The recently formed death cross adds to the speculation surrounding XRP price behavior. Therefore, the first strength indicator for XRP price would be a breakout of the 50 and 200 moving averages. In this regard, a new bullish move could target the $0 level. The 642 and 642 levels $0.662.