XRP, Funds Pour in for 8 Consecutive Weeks Yet Again at Risk of $1 Collapse...Was it a Fake Rebound?

▲ XRP, Bear Market, Downtrend/AI-generated image

XRP's upward trend was halted as it fell 2.9% in 24 hours after rising 9.53% over a week. This was analyzed as short-term profit-taking, driven by the belief that Ripple's positive news of European regulatory approval was already priced in, combined with delays in the US cryptocurrency market structure bill schedule.

According to cryptocurrency market data platform CoinMarketCap on July 8 (local time), XRP fell 2.9% in the last 24 hours. This decline was greater than the overall cryptocurrency market capitalization decrease of 0.72% and Bitcoin's (BTC) 0.51% drop. CoinMarketCap analyzed that profit-taking, characteristic of 'sell the news,' occurred in the market after Ripple secured a formal license for the European crypto regulation (MiCA) in Luxembourg on July 7.

XRP had risen 9.53% over the past week, largely reflecting the regulatory positive news. On the other hand, the US cryptocurrency market structure bill missed its target date of July 4, weakening short-term policy expectations. CoinMarketCap explained that investors moved to secure profits as no new upward catalysts immediately followed.

A decrease in trading volume was also identified as a sign of weak new buying interest to drive the uptrend. XRP spot trading volume decreased by 18.83% to $1.47 billion. CoinMarketCap analyzed that the price decline was closer to a lack of sustained buying demand rather than a strong sell-off pulling the market down.

In the short-term price trend, $1.05-$1.07 was presented as a key support zone. The Fibonacci 78.6% retracement level was formed at approximately $1.07, and the psychological support level is $1.05. CoinMarketCap warned that if the daily candle closes below $1.05, downward pressure could intensify, and there's a possibility of retesting the June low of $1.01.

XRP spot ETFs recorded net inflows for 8 consecutive weeks, with cumulative net inflows reaching $1.49 billion. The tokenized asset volume on the XRP Ledger also reached $4 billion. CoinMarketCap presented the continued inflow into XRP spot ETFs as a key signal for demand recovery and cited the defense of the $1.05-$1.07 support level as a major variable in short-term price movements.

[Article Key Summary]

-XRP rose 9.53% over a week but then fell 2.9% in 24 hours, recording a larger decline than the overall cryptocurrency market.

-XRP spot trading volume decreased by 18.83% to $1.47 billion, with CoinMarketCap pointing to a lack of sustained buying demand.

-XRP is testing the $1.05-$1.07 support zone, and XRP spot ETFs have recorded net inflows for 8 consecutive weeks with cumulative net inflows of $1.49 billion.

*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.*