Traditional investors show abnormal interest in XRP despite outflows totaling hundreds of millions of dollars

By Selena 03/13/23 4:31 PM

By the most recent weekly data from CoinShares on capital inflows into investment products focused on cryptocurrencies, XRP ended the most recent period with a $300,000 influx. The amount, which seems minor initially, takes on a considerably greater significance when considering that the last week recorded the highest outflows. Due to news of regional U.S. bank failures and USDC’s non-payment, investors withdrew $254.5 million from these funds.

XRP remains underbought at current levels

Investor money also poured into products linked to Solana (SOL) and Polygon in addition to XRP (MATIC). These three altcoins are the only ones whose influx value since early 2023 has not been completely wiped out by significant outflows. Hence, there is a $1 million concentration in XRP-focused investment products.

XRP’s trading volume unexpectedly increased by 112%, according to data from CoinMarketCap. The abrupt spike in trade volume was not followed by a significant price increase, which raises questions about why it occurred.

872 million XRP were recently traded, according to WhaleAlert, after Ripple disclosed that it has some exposure to the collapsed SVB. XRP was trading at $0.3612 at the time of writing, down just 0.65% over the previous 24 hours. XRP is underbought, according to Santiment’s MVRV, which estimates the likelihood of future price movement based on the mood surrounding an asset at any given time.

Santiment, an on-chain analytics startup, just published a chart that shows that XRP is currently in the opportunity zone, where prices are more likely to rise.

🤠📊 If you have been awaiting the time to buy #altcoins when there is blood in the streets, our MVRV model indicates that this time has arrived. Prices can of course still fall further, but this is the most #crypto assets have been in opportunity zones since early January. pic.twitter.com/LoM4ooiGUU

— Santiment (@santimentfeed) March 9, 2023

After a price decrease, XRP entered range trading after achieving highs of $0.432 on January 23. The $0.388 and $0.399 levels are the immediate major obstacles that XRP must overcome to trend higher on the upside. Support, however, appears to be building at the $0.3515 level to stop additional falls. At the time of writing, Ripple’s native token is changing hands at $0.3753.

XRP/USD 4-hour chart | Source: TradingView

Version 2.4.0 of XUMM, XRPL’s self-custody wallet, has been released with new upgrades. The months-long in-development release is jam-packed with noteworthy adjustments that improve security and streamline transactions. The addition of pathfinding payments to XUMM is another significant development.