XRP, Bitcoin and Ethereum See Capital 'Outflow' While It Alone Sees Inflow... When Will the Price Rise?

▲ XRP, cryptocurrency security/AI generated image

XRP spot ETFs continued to see net inflows even amidst large-scale capital outflows from major cryptocurrency ETFs, but the XRP price failed to use this as a rebound catalyst. ETF supply and demand held up for over three weeks without a dominant outflow, but XRP, the underlying asset, fell to its lowest level in a month and a half without breaking through key resistance levels.

CryptoPotato reported on May 24 (local time) that XRP spot ETFs recorded a net inflow of just over $22 million during the past trading week. This inflow extended the weekly net inflow trend, which began in May, to three consecutive weeks. According to SoSoValue data, the last trading day where net outflows exceeded net inflows was April 30.

While the $22 million net inflow into XRP spot ETFs was not overwhelming compared to previous inflow sizes, its distinctiveness was highlighted by the fact that it occurred while Bitcoin (BTC) and Ethereum (ETH) ETFs simultaneously experienced significant capital outflows. Bitcoin spot ETFs saw over $1.25 billion in outflows, recording their worst weekly trend since late January. Ethereum ETFs also experienced a net outflow of $216 million, a decrease from the previous week's $255 million, but had not recorded a single day of net inflow since May 8.

In contrast, Solana (SOL) tracking ETFs attracted over $15.5 million, and two Hyperliquid (HYPE) funds saw over $72 million in inflows. Hyperliquid's underlying asset price showed strength, rising to an all-time high of just over $63.

Contrary to the supply and demand trend, the XRP price failed to achieve a clear breakthrough. XRP met resistance at $1.55 last week and immediately turned downward, starting the new trading week at $1.42. Since then, it has widened its losses alongside the overall market weakness, falling below $1.30.

This decline brought XRP to its lowest price level in over a month and a half. After rising to $1.55 on May 17, it has fallen by approximately 15%. However, the article states that it has slightly rebounded in the last 24 hours due to positive developments regarding the US-Iran situation.

Market analyst Ali Martinez warned that XRP has broken below the ascending trendline of a symmetrical triangle on the daily chart. He predicted that if XRP fails to quickly recover $1.40, it could see a further sharp decline to around $1.14.

XRP spot ETFs have maintained a net inflow trend for three consecutive weeks, even amidst capital outflows from major cryptocurrency ETFs. However, the price did not immediately reflect the ETF supply and demand, and whether it recovers $1.40 has emerged as a key variable for the short-term trend.

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