- XRP delivered three consecutive daily positive candles after a long time.
- Users expect XRP to rally significantly after breaking above crucial resistance levels.
- Institutional investors show continued interest in XRP ETFs with net inflows since Jan 21.
XRP maintained bullish momentum for three straight days for the first time in the past three weeks, triggering renewed upside sentiment among crypto traders. The resurging price, onchain data, potential regulatory clarity, and consecutive daily ETF inflows are all supporting the traders’ expectations. Meanwhile, historical obstacles leave room for debate over the sustainability of the renewed momentum.
XRP’s 3-Day Consecutive Rally
TradingView’s data reveals that XRP bounced off a technical support level of around $1.8 at the beginning of the week, surging over 7% on Monday, January 26. The cryptocurrency has sustained this rally for two more days, marking its first consecutive daily gains since the initial rally in the first week of January.
Despite the latest show of strength, XRP remains below significant resistance, trading at $1.92 as of writing. The cryptocurrency has tested the 0.786 Fibonacci resistance at $1.93 on the daily chart multiple times and needs to break above it to confirm a return of bullish momentum. Beyond the Fibonacci resistance lies the $2 psychological level, and this confluence of technical indicators creates a barrier that, if broken, could trigger a significant rally for XRP.
XRP’s Surging Market Cap Amid Regulatory Evolution
The XRP market capitalization, a key metric that signifies the project’s size, stability, and growth potential, has reversed its previous downtrend. According to CoinMarketCap’s data, the metric bottomed around $110 billion and has increased by over $7 billion in less than 72 hours. Typically, a surging market cap indicates an influx of investment into the cryptocurrency’s ecosystem, reflecting growth and increasing demand.
It is worth noting that Ripple’s strong stance on regulatory compliance remains a notable attraction for institutional investors. The Ripple CEO, Brad Garlinghouse, recently declared support for the Crypto Market Structure Bill and urged the U.S. Senate to prioritize passing it into law.
Meanwhile, recent events suggest that legislators could be close to finalizing the bill’s details ahead of final voting. Such developments typically trigger strategic positioning by traders and investors who plan to exploit the potential surge in demand that could follow the bill’s passing.
A Week of Steady ETF Inflows
The steady inflow into spot XRP ETF products over the past week reveals an ongoing strategic positioning by institutional investors. According to Coinglass data, there have been net positive total ETF flows across all five existing products since January 21.
The new trend began after Grayscale’s GXRP experienced an unprecedented $27.9 million outflow on January 20 to trigger a $26.86 million total net outflow in the ecosystem. Besides Grayscale’s GXRP, all other spot XRP ETFs, including Canary Capital’s XRPC, Franklin Templeton’s XRPZ, 21 Shares’ TOXR, and Bitwise’s XRP, have maintained impressive performances.
Bullish Sentiment Brews for XRP
Most XRP users believe in the cryptocurrency’s potential to rebound from the current dip and retest its all-time high. For them, the resistance levels mark a critical point that the cryptocurrency needs to overcome before initiating a parabolic rally.
Despite the roadblocks, XRP bulls consider the low price levels as buying opportunities, particularly when reviewing the actions of whales who have been accumulating the digital asset in significant volumes. They consider a move above the immediate resistance region, particularly the $2 price level, a potential trigger that will suck in retail demand and trigger more institutional buying ahead of XRP’s push to new frontiers.
Related: XRP (XRP) Price Prediction: XRP Trend Stays Bearish as Ripple Targets Institutional Liquidity
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