XRP, Funds Surged Back into ETFs...Liquidity at 6-Month High

▲ XRP/AI-generated image

XRP's exchange liquidity has recovered to its highest level in six months. Approximately $12 million flowed back into the US XRP spot ETF in a single day.

According to FXStreet on September 15 (local time), the XRP Binance liquidity index rose to its highest level in the last six months. CryptoQuant data showed that the 30-day liquidity trading volume increased to approximately $4.6 billion. The liquidity index also rose to 0.0675. Trading activity, which had fallen to the $2 billion to $3 billion range in July and August, appears to have revived.

The recovery of liquidity does not immediately mean a price increase. Arab Chain, a CryptoQuant analyst, explained, "Higher liquidity can create a more favorable environment for executing trades by reducing the impact of large orders on prices." Binance's exchange fund flows also increased, supporting the expansion of user activity.

Institutional funds have also returned. According to SoSoValue, approximately $12 million flowed net into the US XRP spot ETF on Monday. The cumulative net inflow expanded to $1.71 billion. The net asset size increased to $1.58 billion. This indicates a return to net inflows after fund inflows had halted the previous Friday.

Technically, $1.40 has been presented as the first key resistance level. If it recovers this, $1.50 is the next psychological resistance level. On the downside, the 200-day Exponential Moving Average (EMA) at $1.36 is the first support level. This is followed by the 50-day EMA at $1.29 and the 100-day EMA at $1.26. The Relative Strength Index (RSI) is around 55, indicating slowing upward momentum, and the Moving Average Convergence Divergence (MACD) remained in negative territory.

Market variables include the vote on the US cryptocurrency market structure bill and the monetary policy decision by the Federal Reserve (Fed). FXStreet reported that the Fed is expected to raise interest rates on the 16th amidst low expectations for the Senate bill's passage. Although liquidity recovery and ETF fund inflows continue, whether XRP recovers $1.40 has been presented as a key criterion for determining its short-term trend.

[Article Key Summary]

-The XRP Binance liquidity index rose to 0.0675, marking its highest level in six months.

-Approximately $12 million flowed net into the US XRP spot ETF in a single day, increasing the cumulative net inflow to $1.71 billion.

-Technically, $1.40 is the key resistance level, while $1.36 and $1.29 are presented as major support levels on the downside.

*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.*