XRP Price Plummets Despite ETF Inflows as Bitcoin Enters ‘High Liquidation’ Zone
XRP, a major cryptocurrency, experienced a significant decline of over 12% within a 24-hour period, making it one of the worst performers in the current session. This downward trend occurred despite XRP spot ETFs recording inflows, which contrasted with the broader outflows observed in Bitcoin and Ethereum funds.
Bitcoin, the leading cryptocurrency, saw its price drop to just above $70,000, prompting analyst Ted Pillows to highlight that Bitcoin has entered a “high liquidation” zone. Data from CoinGlass indicated that Bitcoin’s brief dip to $70,000 resulted in the liquidation of $886 million in leveraged positions over the course of the previous day.
MN Fund founder and chief investment officer Michael van de Poppe suggested that the outcome of the upcoming meeting between Iran and the US could have a significant impact on cryptocurrency prices. While Bitcoin tested support near $70,000, Ripple’s XRP experienced a notable price slide, falling by 12.2% to reach $1.40. Further exacerbating this decline, retail sentiment on Stocktwits regarding XRP shifted towards a more ‘bearish’ outlook, accompanied by elevated levels of discussion.
Despite this bearish sentiment, XRP spot ETFs were the sole crypto funds to observe net inflows on the previous day. While Bitcoin and Ethereum spot ETFs witnessed outflows of $545 million and $79 million, respectively, XRP saw total net inflows of $4.83 million. The Franklin XRP ETF (XRPZ) notably led this charge by attracting $2.51 million in capital inflows.
The sharp decline in XRP’s price followed a 6.1% drop in Bitcoin’s price, which momentarily touched $70,000 before recovering to around $71,500. Notably, retail sentiment on Stocktwits regarding Bitcoin shifted further towards the ‘extremely bearish’ zone, accompanied by intensely high levels of chatter.
As Bitcoin treaded within the ‘high liquidation’ zone between $65,000 and $70,000, it proved vulnerable to potential sell-offs from traders. Analyst Ted Pillows emphasized the risks associated with this price range, highlighting that it could trigger forceful position liquidations. Technical analyst Caleb Franzen further suggested that Bitcoin may face additional challenges, having declined by about 28% since dipping below the 2-day 200 moving average indicator.
In addition to XRP and Bitcoin, other top cryptocurrencies like Binance Coin (BNB), Cardano (ADA), and Dogecoin (DOGE) exhibited losses exceeding 7%, 7%, and 6%, respectively. Ethereum, Solana, and Tron also experienced declines of 5.5%, 4.9%, and 2%, respectively, among the top 10 cryptocurrencies by market capitalization.
