XRP Institutional Inflows Intact Despite Mt. Gox Scare

XRP continued attracting capital into its namesake investment funds in the week, which saw its price decline by over 20%, raising anticipations about the cryptocurrency’s potential rebound in the coming weeks.

XRP Fund Inflows Are Better Than Ethereum’s

The XRP-tied investment funds collectively attracted $400,000 toward their reserves in the week ending July 5, bringing the total year-to-date inflows to $18 million, according to CoinShares’ weekly report.

In comparison, the funds tied to Ethereum (ETH), the second-largest cryptocurrency by market capitalization, witnessed inflows worth $10.2 million. However, on a year-to-date timeframe, these investment vehicles have collectively lost $15 million, making XRP a better performer.

Meanwhile, cryptocurrency-related investment products saw a collective inflow of $441 million in the week ending July 5. According to CoinShares researcher James Butterfill, this surge in capital, despite the broader market decline due to Mt. Gox and German government selling pressure, indicates that institutions are buying the dip.

Inflows into XRP funds, in particular, remain stronger despite concerns about its involvement in the long-running SEC vs. Ripple lawsuit, signaling that institutional investors have been accumulating irrespective of the case’s outcome.

XRP Technical Outlook: Price Breaks Below Giant Support

From a technical perspective, XRP’s price has broken below its ascending trendline, which has served as support since 2017. Nonetheless, this decline needs further confirmation to be called a full-fledged breakdown, given the inadequate trading volumes it has accompanied.

XRP has exhibited similar bear traps in the past, breaking below the ascending trendline support only to bounce back weeks later.

So far, the cryptocurrency’s fundamentals show the possibility of a rebound in the coming weeks, with the price eyeing a run-up toward the descending triangle resistance—at around $0.60—by August.

Conversely, a continued selloff could lead the XRP price toward its immediate downside target at around $0.29. This level was a support during the May 2022—January 2023 session.