XRP's price increase today was driven primarily by several factors:
Institutional Inflows: XRP and other cryptocurrency markets' upward momentum has benefited from an increase in institutional funds.
According to a report by CoinShares, cryptocurrency funds attracted a total of $441 million in inflows during the same week when the overall cryptocurrency market experienced a sharp drop.
This inflow is seen as support for the market's medium- to long-term bullish outlook, including XRP.
Market Recovery: The overall cryptocurrency market has shown signs of a broader recovery since July 8. XRP's price has risen by 3.5% in the past 24 hours, continuing its rebound momentum from the broader market recovery.
Investment Fund Inflows: Investment funds focused on XRP attracted $400,000 in inflows during the week of July 5.
This shows that investors' interest in XRP is increasing, perhaps because they see buying opportunities during periods of market weakness.
Increase in Whale Holdings: One of the richest groups of XRP investors, entities holding between 100 million and 1 billion coins, showed a slight increase.
This could be a reflection of increased confidence among large market players, who are starting to accumulate more XRP.
Technical rebound: From a technical perspective, XRP's price rebound is a typical market reaction to oversold conditions.
Markets tend to rebound after the relative strength index (RSI) of an asset falls below 30. In addition, XRP's price rebounded after testing the lower trendline of the current descending wedge pattern as support, a technical pattern similar to the previous market performance in April.
Overall, these factors have worked together to drive XRP's price up. Investors and market participants' expectations of possible interest rate cuts by the Federal Reserve, as well as signs of market recovery, have a positive impact on the short-term and medium-term prospects of XRP and other cryptocurrencies.
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