XRP Rallies as ETFs Surge, Price Could Hit $2.50–$3 Range

• XRP is trading at $2.09 with $5.47 billion volume, $125.82 billion market cap, up 0.68% today.
• Exchange XRP balances reduce their holdings from 3.95 billion to 2.6 billion, indicating substantial institutional accumulation.
• XRP-based ETFs witness $935 million inflow following the 16th consecutive day of net purchases, with $245 million last week.

XRP is currently trading at $2.09 on Wednesday, recording a 24-hour trading volume of $5.47 billion and a market capitalization of $125.82 billion. The token’s market dominance stands at 3.99% following a 0.68% gain in the past day, as traders monitor on-chain activity and upcoming macroeconomic developments.

Source: TradingView

XRP Exchange Balances Plummet Significantly Recently

Data provided by analyst ChartNerd reveals that the number of XRP held on trading platforms has decreased from 3.95 billion to 2.6 billion token in less than two months, approximately 1.35 billion token have been withdrawn from the order books.

Source: X

Analysts say this points to growing off-exchange accumulation by long-term holders and institutions. The reduced supply on the market provides relief from selling pressure and positive market sentiment.

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ETFs Attract Heavy Inflows as Institutions Circle

The shift in on-chain supply comes as XRP-focused exchange-traded funds post strong inflows. The XRP related ETFs currently have assets of about $935 million following 16 days of net purchases, according to SoSoValue.

XRP exchange-traded products, along with other over-the-counter products, attracted $245 million alone last week, according to data provided by CoinShares. The attracted significantly more money than Ethereum and Solana products, which attracted a total of $35 million.

Source: CoinShares

They attribute the rising interest to the legal strides made by Ripple against the U.S. Securities and Exchange Commission. They also attribute it to new products developed within the XRP ecosystem, including Ripple USD (RLUSD) and Ripple Prime. These developments have strengthened the case for token as an institutional product, just as the token retests support near $2.

Technical Outlook Ahead of FOMC Decision

XRP is down by around 2% today, with trading volumes easing as the wait begins for the Fed’s FOMC decision. However, the Relative Strength Index reveals the existence of a consolidation phase around the current level. 

Above $2.20, the bearish market seen can potentially be shifted, opening a way for a target of $2.50 and eventually $3. However, a shift below $2 could reduce the strength of the bullish analysis, with $1.65 acting as support.

Source: TradingView

Outside of large-cap tokens, the presale project, Bitcoin Hyper, otherwise known as HYPER, which seeks to bring Solana technology to Bitcoin, continues to entice new money into the market. Its ongoing rise highlights the risk appetite that still exists on the fringes of the market despite bouts of volatility.

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