Here are the possible reasons behind XRP’s daily correction to under $1.35 and what’s next.
The cryptocurrency market is in retreat once again as of the start of the current business week, with BTC dumping to a new local low of under $63,000. Most altcoins have followed suit, and Ripple’s cross-border token is no exception.
The broader ecosystem’s state, in which over $150 billion left the total market cap in 36 hours, is the most apparent reason behind XRP’s 4.5% correction to $1.33. However, there might be another one lurking.
Data from SoSoValue shows that investors who opt to gain XRP exposure through the spot Ripple ETFs in the US have seemingly disappeared. Half of the trading days last week saw no reportable net inflows, and the streak continued on February 23.
As of now, three of the last five trading days have seen an emphatic “$0.00” next to the total daily net inflow number. Consequently, the cumulative net inflows since the first such product saw the light of day in mid-November have remained flat at $1.23 billion.
The current investor behavior is entirely different than the products’ initial days, in which they surpassed the $1 billion mark in precisely a month.
As mentioned above, XRP has declined by over 4.5% in the past 24 hours. It’s also down 8% weekly and a whopping 30% monthly. As such, it currently fights to stay above $1.30, prompting prominent analyst CryptoWZRD to conclude that the asset had, as expected, closed bearish yesterday.
However, they explained that the XRP/BTC trading pair “printed bullish,” and predicted more gains for Ripple’s token against the market leader. This, in turn, would help XRP “turn bullish.”
Merlijn The Trading said yesterday that the cross-border token was “holding structure while alts bleed.” He outlined the significance of the $1.36 support, but the asset has since broken below it.
Nevertheless, he added that the more macro XRP behavior is different than what people expect, as it’s trading less than a speculative altcoin at this point. In fact, it shows more signs of an infrastructure token as it’s being supported by “real utility narratives.”
