XRP, Fund Inflow Again... Despite Overbought, Direct Collision with $1.2

▲ XRP

With XRP surging 5% in 24 hours to $1.16, the progress of the US crypto market structure bill and cumulative fund inflows of $1.49 billion have combined, making the breakthrough of $1.2 a new battleground.

According to crypto media outlet Coingape on July 5 (local time), XRP rose 5% in 24 hours as buying returned to major altcoins. The total cryptocurrency market capitalization increased by 0.86% to $2.18 trillion, and Bitcoin (BTC) surpassed $62,000. Expectations for monetary policy easing also supported the market recovery after US new job creation in June fell below market expectations of 110,000, reaching 57,000.

Another factor boosting XRP investor sentiment is the US crypto market structure bill. Coingape analyzed that regulatory discussions in Washington have raised expectations that they could influence how digital assets are classified. In particular, XRP gained attention in the flow of funds shifting to some altcoins as it was explicitly mentioned in the SEC/CFTC digital commodity category.

Fund flows also contributed to XRP's strength. XRP funds recorded a daily inflow of $6.55 million, increasing cumulative inflows to $1.49 billion, and net assets reached $987.91 million as of July 2. On the same day, Bitcoin spot ETFs saw a net inflow of $221.72 million, ending 10 consecutive trading days of outflows, and Ethereum (ETH) spot ETFs also recorded a net inflow of $29.08 million.

Technically, XRP moved within an ascending channel that started around $1 in early July, with $1.2 presented as the next key resistance level on a 4-hour chart. If $1.2 is decisively broken, $1.25 is the next target zone in the short term, and if the uptrend continues, $1.28-$1.3 are also key observation zones. The Relative Strength Index (RSI) indicated an overbought condition at 79.91, and the Chaikin Money Flow (CMF) showed a buying dominance trend at 0.21.

In a downtrend, defending $1.15 is crucial. If XRP falls below $1.15, it could retest the $1.1 support level, and further declines could weaken the existing ascending channel and bullish momentum, according to analysis. Coingape identified the progress of the US crypto market structure bill in the Senate and the expansion of institutional investment demand as key variables that will determine XRP's future trajectory.

[Article Key Summary]

-XRP rose 5% in 24 hours to $1.16, with progress on the US crypto market structure bill boosting investor sentiment.

-XRP fund cumulative inflows increased to $1.49 billion, and net assets reached $987.91 million as of July 2.

-If XRP breaks $1.2, $1.25 and $1.28-$1.3 are the next observation zones, and if it falls below $1.15, a retest of the $1.1 support level is possible.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*