Key Ripple weekly news highlights. A recap of the key announcements pertaining to XRP.
XRP news just saw a rather exciting week as the first XRP ETF launched earlier this week, courtesy REX Osprey. Also, despite multiple developments or Ripple as well, XRP price action didn’t respond as expected.
Preliminary data revealed that the ETF achieved about $24 million worth of trading volumes in the first 90 minutes after launch. The volume surged to over $37 million volume in the first 24 hours.
That’s not all as far as XRP ETF news was concerned. Grayscale reportedly announced a new ETF with the ticker GDLC.
This new ETF covered five different cryptocurrencies, including Ripple coin XRP, instead of focusing on just one.
These XRP ETF-related developments also came with a lot of bullish optimism. Even Germany’s Frankfurt Stock Exchange predicted that XRP would rally this month courtesy of ETFs.
However, the market’s reaction was contrary to expectations.
XRP price pulled back by almost 1.4% despite the recent excitement around ETFs.
This meant that neither the XRP ETF news nor the recently confirmed rate cuts had an impact on XRP demand. XRP price slid to $2.9 at press time.
XRP’s price action reflected the overall state of the crypto market. The bullish expectations have so far been met with weak demand and rising sell pressure.
Interestingly, over $280 million worth of liquidations across all cryptocurrencies were observed in the last 24 hours. XRP liquidations amounted to almost $10 million.
This liquidation surge underscored a high level of bullish expectations and more potential liquidations ahead if the bears extend their reign into the weekend.
Whale activity remained relatively bullish despite the sell pressure. For context, net spot inflows on Coinbase and OKX surpassed $60 million but Binance had over $5 million worth of outflows.
Derivatives data also reflected a bullish bias with over $109 million worth of net longs. These figures were not exactly what one would call heavy demand.
XRP price reaction was a clear indicator that what was helmed as a catalyst event did not have a clear impact.
This outcome was likely because extremely bullish expectations encouraged some selling, which likely canceled demand.
On the other hand, this market reaction suggests that the markets were not yet convinced that the danger had passed courtesy of the rate cut confirmation.
However, this brings us to a major question. Will XRP price still play out as predicted?
Well, the overall market sentiment remained neutral, indicating that investors were still uncertain about the next market move.
Also, the XRP ETF moves were rather anticlimactic, but they also represented a major milestone for the cryptocurrency.
It was a healthy sign that the first XRP ETF kicked off with healthy volumes. However, inflows will determine the level of interest.
More inflows in the coming days will make it clear just how much institutional demand exists for the XRP cryptocurrency.
ETF status means XRP just elevated its status. Institutional flows could change the dynamics of its price movements just as it has done for Bitcoin and Ethereum.
However, the level of influence that institutional flows will have on XRP will depend on whether other ETF issuers will jump on board.
The market was still waiting to see whether other companies like Blackrock, Ark Invest will also find XRP appealing.
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