The price of XRP (XRP) is up 3.5% over the past 24 hours, continuing a rally that is being fueled by the broader cryptocurrency market recovery. This bullish momentum has been significantly amplified by reports that institutions are accumulating during the recent Mt. Gox-led market downturn.
XRP Fund Sees Inflows Amid Price Crash
XRP’s gains today are part of a broader recovery that began on July 8, when asset management platform CoinShares reported that crypto funds had seen $441 million in inflows that week, while crypto markets plunged 11.28%.
The XRP-focused investment fund attracted $400,000 in the week ending July 5. Since the report was published on July 8, XRP/USD has risen by about 10%.
James Butterfill, researcher at CoinShares, said:
“Digital asset investment products saw a total inflow of $441 million, and the recent selling pressure from Mt Gox and the German government has led to price weakness, which is likely to be seen as a buying opportunity.”
The inflows into XRP and broader crypto market funds coincide with Wall Street’s increased bets on a September rate cut, triggered by weaker-than-expected jobs data released on July 5. Interestingly, XRP’s spot market return from its July 5 low was around 16%.
U.S. Federal Reserve Chairman Jerome Powell repeated a similarly dovish outlook in congressional testimony on July 10.
XRP Whale Holdings Slightly Increase
Today’s XRP price rally also coincides with a slight increase in supply held by one of the wealthiest investors.
In particular, while institutions holding balances of 100 million to 1 billion tokens (turquoise) have seen an increase in the amount of XRP supply held over the past 24 hours, the 10 million to 100 million cohort (black) has seen a decrease in the amount held.
Meanwhile, the supply held by addresses with over 1 billion tokens (blue) was flat. This suggests that entities in lower cohorts are accumulating XRP in preparation for moving to higher cohorts, indicating increasing confidence and investment among large market participants.
XRP Price Rebounds After ‘Oversold’
From a technical perspective, today’s XRP rally is part of a sell-off, a typical market reaction that occurs when an asset’s Relative Strength Index (RSI) falls below 30.
Related: German Government Sells $354 Million in BTC: Will Volatility Increase?
Also, XRP price bounced after testing the lower trendline of the dominant falling wedge pattern as support, similar to the April trend. If the fractal repeats, the next upside target for July appears to be near the upper trendline of the wedge, which is 5% up from current price levels, at $0.45.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.