The cryptocurrency’s market price action remains choppy ahead of crucial inflation data in the United States.
Bitcoin briefly dropped below $86k on Wednesday, but is now heading towards the $87k level.
Meanwhile, Ripple’s XRP has lost the $1.90 support and is currently trading at $1.86 per coin.
Low retail interest and bearish technical signals continue to impact market liquidity.
XRP ETF inflow continues to signal institutional interest
While XRP has been one of the worst-performing cryptocurrencies among the top 10 by market cap in recent months, its exchange-traded funds (ETFs) continue to attract investment from institutions.
Data obtained from SoSoValue reveals that XRP spot ETFs extended their inflow streak, adding $8.5 million to their AUM on Wednesday.
Bitwise’s XRP ETF led with approximately $6.2 million in inflows, followed by Franklin Templeton’s XRPZ with nearly $2.1 million.
Thanks to the latest addition, the total inflow now stands at $1.01 billion, with the AUM now at $1.16 billion.
It is incredible that since their debut on November 13, XRP ETFs have not experienced outflows.
In addition to this, whales have also been accumulating XRP despite the declining prices.
XRP whales currently account for 11.92% of the total supply, up from 11.88% on December 1 and 11.74% on November 4.
Additionally, whales holding 10 million and 100 million coins have grown to account for 16.99% of XRP’s total supply, from 15.98% earlier this month.
The supply held by this group of investors has increased by 6.39% from 10.6% in early February.
If the accumulation continues, XRP could rally in the medium to long term.
Despite the whale accumulation, retail interest in XRP remains significantly low.
The futures Open Interest (OI) stands at $3.56 billion, down from the $3.71 billion recorded the previous day.
The low OI suggests that investors have lost confidence in XRP’s ability to maintain an uptrend.
For XRP to rally higher in the near term, the OI has to embark on a sustained period of recovery.
XRP could retest the $1.77 support
The US government is set to release its CPI data for November later today.
The data is expected to show the headline consumer price index (CPI) increased to 3.1% on a yearly basis in November, up from October’s 3%.
Furthermore, the core inflation, which excludes volatile food and energy prices, is forecast at 3.1%.
This data could affect XRP’s performance over the next few hours.
At press time, XRP is trading below the $1.90 level and could record further losses in the near term.
The Moving Average Convergence Divergence (MACD) indicator’s blue line slips below the red signal line, suggesting increasing bearish momentum.
The Relative Strength Index (RSI) sits at 34, indicating that trading conditions remain bearish but not oversold.
If the bearish trend continues, XRP could retest the $1.77 support level in the near term, with another major support level around $1.45.
However, if the bulls regain control and XRP reclaims the $1.99 resistance, the coin could continue its rally towards the 100-day EMA at $2.36 and the 200-day EMA at $2.43.
The post Will XRP recover above $2 soon? Check forecast appeared first on Invezz
