XRP Emerges As Rotation Target As Investors Exit Bitcoin And Ethereum

XRP’s bearish price action extends, capping off brief upward attempts and keeping the token well below the $2 level. Even with ongoing waning price action, the altcoin continues to attract a notable wave of capital ahead of Bitcoin and Ethereum, the two leading cryptocurrency assets.

Investors Rotate Out Of Bitcoin And Ethereum Into XRP

The broader cryptocurrency market is still hindered by heightened volatility and selling pressure. However, a discernible change in the market positioning is taking place as investors seem to be decreasing their exposure to Bitcoin and Ethereum while allocations into XRP are increasing.

Current liquidity patterns and trading flows point to capital rotation, with the altcoin emerging as one of the main beneficiaries of this shift. Xaif Crypto, a market expert and investor, reveals that the altcoin has been quietly absorbing the rotation over the past few weeks.

As seen on CoinShares data shared by the expert, digital asset outflows continue for the fourth consecutive week, totaling $173 million in light of the United States weakness. During the period, leading digital assets such as Bitcoin and Ethereum experienced steady outflow while XRP saw bullish inflows.

In the 1-week time frame, Bitcoin recorded outflows of over $133 million, with Ethereum reaching about $85.1 million in outflows. Meanwhile, during the same period, capital flows into XRP were over $33.4 million despite its continued downside price performance. Notably, these shifts frequently occur when traders expect relative outperformance, which indicates a shift in the short-term narrative and momentum.

According to Xaif Crypto, the capital shift is happening in real time. The growing demand for XRP might change the short-term outlook for the altcoin and possibly push its price toward the upside trajectory once again.

More Trading Volume Than BTC And ETH

South Korea continues to remain one of XRP’s most influential markets, with investors flooding into the altcoin. Trading activity in the region is drawing fresh attention as the altcoin surpasses Bitcoin and Ethereum in terms of trading volume.

XRP dominates flows on Upbit and Bithumb, surpassing BTC and ETH in local activity. In an X post from Coin Bureau, the expert reported that the altcoin secured $1.2 billion in trading volume within 24 hours across South Korea’s leading cryptocurrency exchanges. 

As seen on the chart, the token led the market by a wide margin, with BTC pulling in $284.97 million and ETH recording $304.41 million in trading volume. Such a development points to a steady shift in regional demand, with traders demonstrating a definite preference for XRP in the face of shifting market conditions.

At the time of writing, the altcoin’s price was trading at $1.47 after a slight bounce of 0.17% in the last 24 hours. CoinMarketCap’s data shows weakening sentiment in trading activity, as its trading volume has fallen sharply by more than 47% over the past day.