- A falling channel pattern drives the steady downtrend in XRP price.
- The coin price holds $1.33 support amid broader market uncertainty and a sustained hold of funds from spot XRP ETFs
- The 20-and-50-day exponential moving average acts as dynamic resistance against XRP price.
XRP, the native cryptocurrency of the XRP Ledger, rose 2.45% during Monday’s market hours to trade at $1.39. The buying pressure follows broader market sentiment as a recent comment from U.S. president Donald Trump suggests that conflict with Iran could soon come to an end. In addition, a sharp pullback in oil prices has also reduced concern over immediate inflation pressure and boosted risk appetite across crypto. Meanwhile, the XRP price has already showcased strong resilience to the recent market uncertainty and bolster recovery potential amid sustained demand to its exchange traded funds (ETFs).
Spot XRP ETFs Demand Persists Amid Market Uncertainty
On March 10th, the crypto market witnessed a short uptick of 1.05% which pushed its market capitalization to $2.39 Trillion. Amid de-escalating geopolitical tension, the Bitcoin price also shows a 4.5% surge to reach $71,000 mark, while Ethereum price jumps 2.4% up to reach $2,050.
Meanwhile, the XRP price continued to hover above a strong horizontal support of $1.33. Despite a significant correction earlier this year, the US spot XRP exchange traded funds have seen about $1.4 billion in total inflows since their launch in late last year, Bloomberg Intelligence analyst James Seyffart said.
Eric Balchunas, another Bloomberg ETF specialist, commented that this performance is exceptional and draws similarities to ETFs of Solana, which also attracted a large amount of capital during a steep 45% price drop after launch. He suggested that new funds often struggle to attract money during such downturns, often because of changing investor focus elsewhere, and that much of the XRP interest was due to dedicated holders and not general retail participants.
While the spot XRP ETF shows resilience in ongoing market uncertainty, its inflows are inconsistent which are needed to drive a sustainable recovery.
According to SoSoValue data, these are the same U.S.-based spot XRP ETFs saw a short net outflow of $18.5 million on March 10th.
XRP Price Holding Major Support to Drive Key EMAs Breakout
Over the past month, the XRP price has been hovering above the $1.33 support, amid the ongoing uncertainty in the market. The consolidation showed several attempts to breach the narrow range formation, but failing to do so, indicated a lack of initiation from buyers or sellers.
If the spot XRP ETFs managed to attract steady inflow, the coin price could rebound above the immediate overhead resistance of 20-and-50-day EMAs. A potential breakout would push XRP price 25% higher from current value and challenge the key downsloping trendline of channel pattern.
As highlighted in the chart below, the falling channel pattern drives the mid-term correction trend in XRP. A successful flip of the overhead trendline would accelerate the market buying pressure and bolster a trend short in this altcoin.
On the contrary, if the supply pressure at channel resistance persist, the XRP price could revert lower and continued to correction within the two parallel trendline.
Source: https://www.cryptonewsz.com/spot-xrp-etfs-1-44-billion-in-inflows-price/
