XRP spot ETFs have surpassed $1.000 billion in inflows. Meanwhile, a technical pattern suggests a potential rally toward $3 in the current market.
While the price of XRP has shown a sustained correction from its mid-year highs, the underlying financial movements tell a very different story, featuring an accelerated institutional adoption of this cryptocurrency.
XRP is currently trading slightly lower intraday, extending a downward trend that began after reaching a peak of $3,65 in July. However, capital flow data suggests that this corrective phase may be finding its definitive bottom thanks to massive support from regulated investment products.
Analysts' attention is now focused on validating the long-term investment thesis, driven by the influx of fresh capital into the ecosystem. Although immediate price action shows weakness, the market structure is sending accumulation signals rarely seen during prolonged bear markets. For experts, the current narrative no longer relies solely on retail speculation, but is based on... a tangible base of institutional money which is taking advantage of current prices to position itself for the future.
Institutional capital inflows defy XRP's downtrend
The most compelling data defining XRP's current state comes from exchange-traded funds (ETFs). According to recent SoSoValue records, XRP ETFs have surpassed the psychological and financial barrier of $1.000 billion in cumulative inflows.
However, this milestone takes on greater significance when compared to the performance of other leading assets, as Solana's funds have taken considerably longer to reach similar figures after their debut. The speed with which capital has flowed into these products demonstrates a voracious appetite for exposure to XRP, regardless of the daily volatility the cryptocurrency's price may exhibit in the market.
The consistency of these inflows is a key factor in assessing the asset's health. Since their launch last month, these investment vehicles have not registered a single day of negative inflows or net outflows, as shown in the chart. Even on November 18, the day with the least activity to date, these funds managed to attract more than $8 million.
Capital flows into XRP ETFs are maintaining an impressive pace, already surpassing initial projections from banks like JPMorgan. Those analysts had estimated annual inflows of between $6.000 billion and $8.000 billion for these funds, but the current volume suggests that these targets will be exceeded within months. This momentum reinforces the view of major asset managers, who see XRP as a solid investment destination.
Meanwhile, the market is showing a clear rotation of funds. Bitcoin and Ethereum, pillars of the sector, are facing significant outflows. For example, spot Bitcoin ETFs saw withdrawals of over $270 million in a single day, accumulating losses from previous sessions. Ethereum is not far behind, with over $500 million leaving its funds in just four days. Investors are maintaining their bet on cryptocurrencies as a whole, but it seems they are shifting their resources toward XRP, trusting in its promise of quick returns compared to more mature assets.
The $3 price per XRP has appeared on analysts' radar.
According to market analysts, the daily chart for XRP presents a mixed technical outlook that generates optimism Among bullish investors, the price remains under selling pressure, below the main moving averages, and with oscillators in negative territory. However, a closer look reveals patterns that often signal the start of bullish reversals.
In particular, an inverted head and shoulders pattern is emerging, with the price of XRP now forming the right shoulder. This final stage, if it breaks above the upper resistance, typically triggers a strong upward move. Simultaneously, a double bottom is forming around the $1,81 level, where the market has twice rejected a move below that level, indicating that sellers are becoming exhausted in the face of strong demand absorbing supply.
Source: CoinGecko
These two bullish patterns reinforce each other, and the actual buying volume in XRP ETFs adds further support. Together, they point to a theoretical target of $3, which would represent a 57% increase from current levels and push XRP into more positive trading ranges.
The key, according to analysts, is to monitor the support level at $1,81. Staying above this level will validate the cryptocurrency's entire bullish structure, while a drop below it will invalidate it and could open the door to further selling. However, institutional inflows are providing crucial support, limiting the risk of prolonged declines in this context. Therefore, considering all of the above, an upward move is expected if this key support level is confirmed.
