XRP’s $1.85 Hold Despite Bitcoin Rebound Losing Momentum with $1.25 Billion in ETF Assets
XRP saw trading activity at $1.85 over the weekend, with traders capitalizing on rallies while institutional interest remained steady. Exchange-traded fund assets for XRP hit $1.25 billion after attracting $8.19 million in recent capital flows. On the other hand, Bitcoin’s attempted rebound faltered near resistance levels during U.S. trading hours, signaling a disconnect between market movements and institutional investment trends.
XRP remained confined within a trading bracket of $1.85 to $1.91, facing resistance at the $1.90 mark as sellers pushed back. Trading volume surged by 76% above usual levels when the price hovered near $1.91. Institutional investors continued to show interest by injecting $8.19 million into XRP ETF products recently. The total net assets held in ETFs climbed to $1.25 billion since their launch in November, indicating ongoing professional demand for structured investment options. Portfolio managers increasingly favor these regulated vehicles, which not only streamline custody and compliance matters but also offer a more structured approach compared to direct spot holdings.
Bitcoin, on the other hand, experienced a decline to $87,500 on Friday, marking a 1.67% drop within 24 hours. Despite liquidity injections from the Federal Reserve, the cryptocurrency failed to maintain momentum above $90,000. This struggle underscores the challenges faced in the cryptocurrency market, with XRP’s price consolidation despite growing ETF assets shedding light on the disparity between institutional investment patterns and short-term trading maneuvers.
Institutional investors have been accumulating positions through regulated products, whereas short-term traders have been liquidating holdings at key resistance levels. The $1.86 support level held firm through various tests, preventing further downward momentum. Without a successful break above $1.87 to $1.88, XRP remains susceptible to a decline towards the $1.77 to $1.80 demand zone. A breakthrough beyond $1.90 could trigger a short-covering rally towards $1.95 to $2.00.
The broader market weakness, combined with Bitcoin’s struggle to recover, is contributing to a trend of range-bound trading conditions across major cryptocurrencies. The juxtaposition between institutional investment patterns and short-term price movements underscores the complex nature of the cryptocurrency market, where multiple factors intertwine to influence asset valuations and investor sentiment.
