Ripple (XRP) price stumbled at the $0.61 resistance on Thursday July 25 amid bearish headwinds from Ethereum ETFs, market data analysis shows how Bull traders are battling to extend the rally toward the $0.65 territory
The crypto market has been in a steady uptrend since July 5. Amid several bullish catalysts, the Ethereum ETFs launch and Joe Biden bowing out for the the US 2024 Elections race, have triggered both highlight potential positive shifts within the crypto regulatory landscape.
Expectedly, as one of the most litigated crypto entities during the Biden administration, Ripple (XRP) has attracted considerable demand. Crypto-native investors anticipate that Biden’s exit, increases the likelihood of victory for Donald Trump -a candidate perceived to have a more friendly stance on crypto.
In effect, XRP price has raced into a 17% rally since Biden’s announcement, outperforming the BTC, ETH and every other crypto assets in the top 10 valuation rankings.
The chart above shows how XRP price rose 17.69%, from $0.54 on July 19, to reach a weekly time frame peak of $0.63 on July 23. This remarkable price performance spark speculations that XRP price could reclaim the $0.65 resistance territory within the weekly timeframe.
However, recent bearish events surrounding Ethereum ETFs, threatens to spill over towards the rest of the altcoin market, putting XRP’s price rally at risk.
Firstly, Ethereum ETFs on officially launched Tuesday July 23, after nearly 2 months of regulatory delays.
Many crypto traders opted to sell-into the market euphoria, to locking some of the unrealized profits they had racked up since the bull run began three weeks ago, after the dovish NFP and CPI data released on July 5.
On the first day of trading, Ethereum ETFs attracted a healthy $1 billion trading volume and $107 million inflows. This helped to nullify the bearish headwinds from the sell-the-news frenzy on July 23.
But things took a negative turn on July 24. The nine recently launched spot Ether exchange-traded funds (ETFs) saw $133.16 million in net outflows in their second day of trading, after registering $106 million in net inflows on their debut.
The Grayscale Ethereum Trust, the only spot Ether ETF to see outflows on both trading days, shed a substantial $326.86 million. In contrast, Fidelity’s FETH emerged as the top inflow recipient, drawing in $74.46 million, with other funds seeing inflows including the Grayscale Ethereum Mini Trust, Bitwise ETHW, and VanEck ETHV.
BlackRock’s ETHA, which was a standout performer on Tuesday with $266.55 million in inflows, saw a more modest $17.44 million on Wednesday.
Trading volume for these funds also declined from Tuesday’s peak above $1 billion, with approximately $951 million changing hands on Wednesday.
Meanwhile, the bearish aftershocks from the ETH ETF sell-offs, spread across to the altcoin markets. XRP price has now dipped 6% from its weekly peak, as fell below $0.60 at the time of writing on July 25.
It now remains to be seen if the XRP bulls will hold firm to their double-digit unrealized gains, or succumb to the bearish pressure building up.
Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.