XRP’s institutional demand has been growing at an accelerating rate. The first U.S XRP ETF was launched a year ago and since then, they have accumulated about 1.16 billion tokens.

This amount is equivalent to $1.15 billion, representing around 1.77% of XRP’s market cap. However, the cumulative total net inflows were worth $1.79 billion at press time.

This disparity in total net assets held and cumulative net inflows comes from the decline in price over the past few weeks.

The major institutions taking the lead on XRP’s accumulation are Bitwise, Franklin Templeton, Canary Capital, 21Shares, Grayscale, and REX-Osprey.

This hinted at institutional exposure, even though $1.09 million in capital left as the markets closed for the weekend. Even so, the overall outlook seemed to indicate that the circulating supply of the altcoin is being absorbed at a bigger scale.

Why is XRP’s possible recovery on the cards?

While institutions were buying XRP, the altcoin was crashing on the charts due to massive selling. Despite a 40% decline to $0.99 and losing the $1-psychological level, U.S investors seem to be returning.

The net buying trend of XRP on Coinbase turned positive over the past two consecutive days. The hourly charts showed that more than 4 million XRP were longed by U.S investors after a period of heavy selling.

However, the metric stayed negative on Binance and OKX exchanges, though it was trading near the neutral level. In fact, the figures on OKX and Binance spiked above the neutral level before retracing shortly after.

This was a signal that traders’ activity was slowly shifting with the dip below $1.

At the same time, indicators were starting to show signs that the 40% correction from $1.66 to $0.99 was about to end. The TD Sequential printed a buy signal on the daily charts after two months of decline.

The daily trading volume showed that about 2.09 million tokens were bought at press time. The Stochastic RSI also bounced from oversold territory to 41.64, hinting at the return of buying pressure on smaller timeframes.

However, the altcoin still remains well below the 200-day SMA at $1.26, indicating that the bigger trend may bebear-controlled. If $1 could be reclaimed, a recovery towards $1.15 and $1.26 could follow.

Conversely, losing the $0.98-$0.99-level could expose $0.80 or lower levels. The ongoing correction is likely to continue unless a clear market structure flip happens.

Final Summary

  • XRP ETFs absorbed over 1.16 billion tokens from the circulating supply, indicating institutional demand. 
  • XRP was trading at $0.99 as Coinbase investors returned to buying after heavy selling over the past two months.