Market Fear and ETF Inflows
XRP has seen a decline from $2.20 to $2 over the past three days, sparking worry among investors. However, data shows that XRP‑linked exchange‑traded funds (ETFs) have experienced 15 straight days of net inflows, totaling nearly $900 million in new capital. This suggests that both retail and institutional investors are positioning themselves for a potential rebound.
Sentiment data from Santiment indicates that social sentiment has plunged into “Extreme Fear,” while CoinMarketCap’s Fear and Greed Index has dropped to just 16. Historically, such extreme sentiment readings often precede market reversals.
Technical Analysis: Bullish Signals
From a technical perspective, XRP has bounced back from the $1.95 support level and is forming a pattern of higher lows, indicating a potential trend reversal. The next key level to watch is $2.20. A breakout above this resistance level, followed by a successful retest, could confirm a bullish reversal pattern and pave the way for a rally towards $3 or higher.
In the past 24 hours, XRP has gained 3.3%, with trading volume jumping nearly 90%. This increase in momentum suggests that the token could be positioning itself for a major breakout.
Conclusion
While fear is prevalent in the market, the continuous inflows into XRP‑linked ETFs and positive technical indicators suggest that a significant price rebound could be imminent. Investors should keep a close eye on key resistance levels and market sentiment for further clues on XRP’s next move.
