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XRP holds above $2… institutional inflows fuel expectations for a medium- to long-term rise

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YM Lee
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Summary

  • XRP is trading around $2.15, above the $2 level, though analysts say it does not yet constitute a clear trend reversal.
  • While the overall digital-asset market saw outflows, XRP-related investment products posted $45 million in net institutional inflows, up more than 400% from the prior week.
  • Analysts cited the possibility of a pullback to $1.77, upside to the $3 range if $2 support holds, and the potential for a meaningful trend shift if price establishes itself above $2.40.
Photo=Shutterstock
Photo=Shutterstock

With XRP holding the $2 level, continued inflows from institutional investors are heightening market interest in the potential for medium- to long-term gains.

According to Cointelegraph on the 14th (local time), XRP has recently maintained prices above $2, but some analysts say a clear technical trend reversal has not yet been confirmed. XRP is currently trading around $2.15.

Earlier this year, XRP reclaimed its 50-day simple moving average (SMA, a moving average used to gauge the medium-term trend) and entered a retest zone of its downtrend. This is considered a typical technical setup that can lead to further upside if buying interest holds, but the prevailing view is that the current price action is closer to a stabilization phase than a sharp rally.

What stands out is the institutional flow of funds. CoinShares data show that while the broader digital-asset market saw about $454 million in outflows last week, XRP-related investment products recorded net inflows of $45 million. The figure was up more than 400% from the prior week, a stark contrast to the overall market.

Such institutional demand is cited as a factor helping XRP hold the $2 level even in a liquidity-constrained environment. The move is seen as meaningful in that the price rise is not relying solely on short-term sentiment but is being supported by underlying demand.

On-chain data also suggest limited signs of overheating. According to CryptoQuant, XRP’s trading-volume Z-score on Binance (an indicator showing how overheated recent volume is versus its average) stood at about 0.44, only slightly above the 30-day average. This is interpreted as a signal closer to an accumulation phase with relatively balanced buying and selling, rather than a spike in speculative trading.

In the market, both the possibility of a near-term pullback and further upside are being discussed. Analyst Credible Crypto said three instances of resistance were confirmed near recent highs, pointing to the possibility of a correction toward $1.77, while also suggesting room for a further move into the $3 range if support holds near $2.

Well-known futures trader Dom offered a more conservative view. He noted that the $2.10 area has held for months, but argued that a meaningful trend reversal on the daily chart would only be possible if price establishes itself above $2.40. In fact, XRP previously faced resistance around $2.40 on Jan. 6 and pulled back.

At the time, whale addresses saw net selling of more than $100 million from Jan. 4 to 7. If XRP tests $2.40 again, changes in whale flows are expected to be a key variable.

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YM Lee

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