The relentless selling pressure that has plagued XRP for months finally appears to be fading. Massive institutional inflows into investment funds and a sharp drop in exchange reserves suggest the tide is turning for the popular cryptocurrency. Investors are now watching closely to see if this shift in data can fuel a major price rebound.
Institutional Money Floods Into XRP Markets
The appetite for XRP among large investors shows no signs of slowing down. Spot XRP ETFs have recorded a stunning streak of inflows that highlights growing confidence in the asset. Recent data reveals that these funds took in over $8.19 million in a single Tuesday session. This marks the 28th consecutive day of positive flows since the products launched. It is a clear signal that Wall Street is interested.
Total assets under management for these funds have now hit a staggering $1.25 billion. The total net inflow stands at $1.13 billion. This consistent buying pressure from institutional players provides a strong floor for the price.
Key ETF Performance Metrics:
- Total Net Inflows: $1.13 Billion
- Consecutive Inflow Days: 28 Days
- Leading Fund: Canary Capital (XRPC) with $384 Million
- Recent Activity: Franklin Templeton (XRPZ) led Tuesday gains
While trading volume across the broader market dipped slightly due to the holiday season, the sustained interest in these specific funds tells a different story. Money is moving away from other major assets like Bitcoin and Ethereum and finding a home in XRP. This rotation suggests that smart money investors see unique value in the current price levels.
XRP cryptocurrency coin chart growing institutional etf investment graph
Exchange Reserves Drop To Multi-Month Lows
A significant signal has emerged from the on-chain data on Binance. This is the largest cryptocurrency exchange in the world. The amount of XRP held in Binance reserves has plummeted to 2.6 billion tokens. This is the lowest level seen since July 2024.
When reserves on exchanges drop, it usually means one thing. Investors are moving their coins into private wallets for long-term holding. They are not planning to sell anytime soon. This action reduces the immediate supply available for sale.
Why This Matters:
“A supply shock occurs when demand stays steady but the available tokens for sale disappear. This dynamic often precedes a sharp increase in price.”
The shift to self-custody is a bullish indicator. It shows that the panic selling from whales and long-term holders that defined the last six months is likely over. The market is transitioning from a distribution phase to an accumulation phase.
Critical Price Support At $1.80 Is Vital
Despite the positive fund flows and reserve data, the technical charts present a cautious picture. The price of XRP is currently hovering around $1.85. It has faced a downtrend for nearly half a year. The bulls must defend the support zone between $1.80 and $1.90 to keep the recovery hope alive.
Veteran market analysts have weighed in on this setup. Peter Brandt recently pointed out a potential bearish pattern on the weekly chart. He noted a double-top formation. This pattern typically signals further drops. However, he also noted that if the price can bounce from the current oversold levels, this bearish pattern would fail.
Technical Scenarios to Watch:
| Scenario | Key Level | Outcome |
|---|---|---|
| Bullish Defense | Hold $1.80 | Validates on-chain strength and targets $2.00+ |
| Bearish Breakdown | Lose $1.80 | Invalidates support and risks crash to $1.00 |
The Relative Strength Index (RSI) is currently in the lower range. This indicates the asset is oversold. Traders often look for this signal to enter long positions. But the market needs a clear reversal confirmation before the broader trend changes.
Whale Activity Shows Mixed Signals
The behavior of large wallet holders, known as whales, is also shifting. The 30-day moving average of whale flows shows that aggressive selling is easing. The intensity of the dump is fading. However, the metric still remains in negative territory. This means whales are selling less than before, but they have not fully switched to aggressive buying yet.
The market is in a delicate balance. On one side, ETF buyers are absorbing supply. On the other side, legacy holders are slowly stopping their sales. If the price holds above the $1.80 mark for a few more days, it could trigger a confidence boost. This would likely push the remaining whales to flip from sellers to buyers.
The drop in trading volume by 19% in the last 24 hours suggests traders are waiting. They want to see which direction the market chooses. A breakout above $1.90 with high volume would confirm that the on-chain data was correct. Until then, caution is the best strategy.
The combination of record ETF inflows and draining exchange reserves paints a promising picture for XRP. While technical risks remain, the fundamental demand is stronger than it has been in months. The next few days will determine if the bulls can turn this data into a sustainable rally.
Do you think XRP will hold the $1.80 support level or crash lower? Let us know your thoughts in the comments below. If you are tracking this move on social media, use the hashtag #XRPETF to share your analysis with the community!
