XRP Crashes 47% to $1.84 but $422M ETF Inflows Hint at a Rebound Rally
XRP has taken a big tumble, finally falling to a key support line that it'd been comfortably tapping since Dec. The token hit $1.8430...
Quick overview
- XRP has dropped significantly, falling to a key support line at $1.8430, down 47% from its 2024 high.
- The overall crypto market has lost over $1.2 trillion in value, with XRP's market cap now at $115 billion.
- Despite the downturn, strong demand for XRP ETFs and the growth of Ripple's USD stablecoin could provide potential support for the token.
- XRP's future price movement will depend on ETF momentum, stablecoin adoption, and broader market conditions.
XRP has taken a big tumble, finally falling to a key support line that it’d been comfortably tapping since Dec. The token hit $1.8430, slashing almost half (47%) off its 2024 high. This downturn sent marketcap down to $115 billion – a long way from its year-to-date peak of $200 billion.
The rest of the crypto industry has taken a serious hit too – Bitcoin and the major altcoins have wiped out over $1.2 trillion in value. Despite that, analysts are flagging up some emerging factors that could change things for XRP in the next few weeks.
ETF Demand is a Good Omen
There’s one sign of strength that stands out – steady demand from US investors. Since that first XRP ETF got the green light, XRP ETFs have had daily inflows – as per SoSoValue.
Key numbers tell the story :
- $422 million flowed into Canary’s XRP ETF
- Bitwise’s XRP ETF has $384 million in net assets
- Combined ETF assets total 0.33% of XRP’s market cap
- More ETF launches on the cards from Franklin Templeton and Grayscale
ETF ownership is tiny for Bitcoin and Ethereum – just 5% and 6.5% of marketcap, respectively. If XRP ETFs just reach that level, the total asset pool could hit $5.7 billion, giving the whole market a significant boost in terms of liquidity and investor confidence.
The other catalyst is Ripple’s USD stablecoin, which just passed the $1 billion mark in marketcap – $300 million of that is out there on the XRP Ledger. That expanding adoption does a lot to prove network utility and could give the price some long-term support.
What to Keep an Eye On
Market leverage has eased off, with futures open interest now down to $3.3 billion from over $10 billion earlier in the year. That lower leverage has reduced the risk of volatility and sets the scene for a potential recovery.
The three-day chart for XRP has the token resting at a key support point. It’s slipped below some important technical levels – the 50% Fibonacci retracement and both the 50-day and 100-day EMAs.
To keep an eye out for :
- If XRP breaks below $1.8430, it could confirm a double top pattern at $3.4072 – and send the token plummeting to $1.50
- A rebound is still possible, and if XRP can hold on its support will be $2.50
Right now, XRP is at a crossroads – whether or not it levels out or keeps on sliding will depend on the momentum of those ETFs, stablecoin expansion and what’s happening in the broader market.
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