Institutional inflows and increasing whale holdings are primarily driving XRP’s price surge, mirroring the broader cryptocurrency market’s recovery.
XRP’s Recent Performance
XRP’s price has risen by 3.5% in the past 24 hours, continuing its rebound as the broader crypto market recovers. This bullish momentum has been significantly amplified by reports of institutional accumulation during the recent market dip led by Mt. Gox.
Institutional Inflows Boost XRP
XRP’s gains today are part of a broader recovery that started on July 8, when CoinShares reported that crypto funds collectively saw $441 million worth of inflows in the same week the crypto market dropped by 11.28%. XRP-focused investment funds drew in $400,000 in the week ending July 5, and since the report’s publication on July 8, the XRP/USD pair has risen by nearly 10%.
James Butterfill, a researcher at CoinShares, noted:
“Digital asset investment products saw inflows totaling $441 million, with recent price weakness prompted by Mt Gox and the German Government selling pressure likely being seen as a buying opportunity.”
Broader Market Influences
Inflows into XRP and the broader crypto market funds coincide with increasing Wall Street bets on a rate cut in September, prompted by weaker-than-expected jobs data released on July 5. Interestingly, XRP’s spot market returns from the July 5 low are around 16%.
United States Federal Reserve Chairman Jerome Powell reiterated a similar dovish outlook in his July 10 testimony to Congress, which has also contributed to the positive market sentiment.
Increase in XRP Whale Holdings
XRP’s gains today further coincide with a slight increase in the supply held by one of its richest investor cohorts. In the last 24 hours, the XRP supply held by entities with a balance of 100 million to 1 billion tokens has increased, while the supply held by the 10 million to 100 million cohort has decreased. The supply held by addresses with over 1 billion tokens remained flat. This suggests that entities in the lower cohort are accumulating XRP to move into the upper cohort, signaling growing confidence and investment among larger market players.
Technical Factors: Oversold Bounce
From a technical standpoint, XRP’s gains today are part of an oversold bounce, a typical market reaction when an asset’s relative strength index (RSI) falls below 30. This indicates that the recent price increase is partly a reaction to the asset being previously oversold.
Summary Review: XRP’s recent price surge is driven by institutional inflows, increased whale holdings, and a broader market recovery, supported by favorable economic signals and technical factors.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
