Key Insights
- •XRP price plunged 4% and slipped below the $2.1 mark again.
- •Even so, the XRP ETF inflow neared $900 million mark, which may boost market sentiment.
- •Analyst hints at a possible 20% rebound in XRP price, citing historical trends.
XRP price continued to stay in the negative territory, falling by more than 4% and slipping below the $2.1 mark again on Friday. The crypto had reclaimed the $2.2 mark a couple of times over this week, which initially made market participants hopeful of a rally. However, the upward momentum was short-lived, as evidenced by the latest decline in the asset’s price. In addition, the broader crypto market also recorded a slump today, with BTC price hovering near the $91,400 mark at the time of writing. It’s worth noting that the market has witnessed a significant recovery earlier this week before this latest retreat. Amid this, the social media trends showed soaring fears among traders with respect to the Ripple native coin. Despite that, experts appear to have remained bullish on the future trajectory of the asset. Some even hinted towards a potential 20% rally in XRP price, citing historical trends. Besides, the sentiment was further buoyed by the continuing inflow into the US Spot XRP ETF since its launch. This reflects the soaring institutional confidence in the asset.
XRP Price Slips Despite Positive ETF Fund Flow
XRP price was down more than 4% today and was hovering near the $2.02 level at the time of writing. Its trading volume saw a 4.5% rise, suggesting an uptick in trading activity in the market. Notably, the crypto XRP hovered between the $2.16 and $2.02 levels in the last 24 hours. In the weekly chart, Ripple coin has lost more than 7% while its monthly loss was recorded at 6%. The decline comes despite a flurry of positive predictions from the market experts. For context, in a recent X post, a market analyst stated that XRP may challenge the $2.75 resistance in the near future if it can flip the $2.3 level into a strong support. On the other hand, the XRP ETF has also continued to showcase sustained institutional interest, which further points to a bullish run ahead. According to SoSoValue data, the cumulative total net inflow into the investment instrument totaled $887.12 million. On December 4, the overall inflow into the investment instrument came in at $12.84 million.
Can Ripple Coin Witness a 20% Rally?
Despite the gloomy momentum, the recent market trends hint at a potential rebound in XRP price. The leading on-chain analytics platform Santiment hints at a possible 20% rally in Ripple coin, citing historical trends. According to Santiment’s social data, XRP is currently experiencing the most fear, uncertainty, and doubt (FUD) since October. Besides, the report showed that it is witnessing abnormally higher bearish comments compared to bullish ones. Historically, such extreme fear zones have preceded significant price rallies. Over three days following November 21, XRP price rallied 22% after reaching a similar fear zone, only to be followed by a quick halt as greed took over.
Considering that, Santiment’s data suggests that a similar opportunity may be emerging again, with XRP price poised to break out of its current slump.