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XRP price rose for two consecutive days as investors bought the dip, and a highly bullish chart pattern formed. Ripple also jumped to a high of $3 after a report pointed to robust inflows last week.
XRP Price Rises as Weekly Inflows Jump
A report published by CoinFund showed that XRP had inflows last week, even as outflows in the crypto market rose. The data reveal that XRP had weekly inflows of $31.3 million last week, bringing the year-to-date assets to $753 million.
XRP’s inflows last week were higher than those of its peers like Bitcoin and Solana. Bitcoin recorded a net outflow of $404 million last week, while Solana’s inflow was $8.8 million.
More data show that some of the top XRP ETFs recorded substantial inflows, even as XRP price pulled back. The closely-watched Teucrium 2x Long Daily XRP ETF (XXRP) had over $21 million inflows last week.
It has had inflows in all weeks since its inception in the first week of April. It now has over $372 million in assets under management (AUM).
The most recently approved ProShares Ultra XRP ETF (UXRP) has had inflows for two consecutive weeks since its launch, bringing its assets to nearly $80 million.
XXRP and UXRP ETFs differ from the spot XRP ETFs that will likely be approved later this year. These funds track XRP futures and offer a 2x leverage. As such, if the XRP price rises by 1% in a day, the two will rise by 2%, and vice versa.
The ongoing XXRP and UXRP ETF inflows are a sign of demand for XRP ETFs among American investors. As such, there is a likelihood that the mainstream funds will have higher inflows once approved.
Ripple USD (RLUSD) Stablecoin Growth Continues
The other potential bullish driver for the XRP price is that the Ripple USD (RLUSD) stablecoin is gaining traction among investors. CoinMarketCap data shows that the token’s market cap crossed the important milestone of $600 million last week.
RLUSD’s demand among users is also increasing, with daily transaction volumes exceeding $50 million. Most notably, the stablecoin was launched in December last year. It is closing the gap with PayPal USD (PYUSD), a stablecoin that was launched in 2023.
RLUSD success is important for the XRP price, especially after President Donald Trump signed the GENIUS Act into law. This means that it may become the most viable alternative to Circle’s USDC, now that USDT does not meet the requirements of the GENIUS Act.
It also benefits XRP price because it leverages the XRP Ledger (XRPL). As a result, it is helping to create utility for the network. In the future, the higher fees brought to the ledger will help to reduce the number of XRP tokens in circulation through burning.
RLUSD success is also bullish because it will bring institutional demand to the XRP Ledger and boost its sentiment. In this, investors are likely to keep buying XRP if they see RLUSD gaining momentum.
XRP Price Technical Analysis
XRP price has strong technicals that may push its price higher in the coming months or weeks. For one, it has formed the highly bullish cup-and-handle pattern on the daily chart.
Its upper side was at $3.40, while the lower side was at $1.6100, the lowest level in March. XRP has constantly remained above the 50-day and 200-day moving averages, a sign that the momentum remains strong.
It also formed a bullish engulfing pattern, which happens when a bullish candle fully covers the red one. Therefore, the most likely scenario is where the XRP price jumps and hits the upper side of the cup. Moving above that level will point to more gains to $5.2.
Summary
The Ripple price pulled back sharply last week amid profit-taking among investors. However, on the positive side, the total inflows jumped last week. Besides, XRP price has formed a cup-and-handle pattern, which often leads to more gains over time.
