Why is XRP price up today?

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XRP (XRP) price has risen by 3.5% in the past 24 hours, continuing its rebound rally ignited by a broader cryptocurrency market recovery. This bullish momentum has been significantly amplified by reports that institutions have been accumulating during the recent Mt. Gox-led market dip.

XRP funds witness inflows during price crash

XRP’s gains today are part of a broader recovery that started on July 8, when asset management platform CoinShares reported crypto funds collectively witnessing $441 million worth of inflows in the same week the crypto market crashed 11.28%. 

XRP-focused investment funds drew in $400,000 in the week ending July 5. Since the report’s publication on July 8, the XRP/USD pair has risen by nearly 10%.

XRP/USD daily price chart ft. CoinShares weekly report. Source: TradingView/CoinShare

James Butterfill, researcher at CoinShares, noted:

“Digital asset investment products saw inflows totalling US$441m, with recent price weakness prompted by Mt Gox and the German Government selling pressure likely being seen as a buying opportunity.”

Inflows into XRP and the broader crypto market funds coincide with increasing Wall Street bets on a rate cut in September, prompted by weaker-than-expected jobs data released on July 5. Interestingly, XRP’s spot market returns from the July 5 low are around 16%.

United States’ Federal Reserve Chairman Jerome Powell reiterated a similar dovish outlook in his July 10 testimony to the Congress. 

Slight increase in XRP whale holdings

XRP’s gains today further coincide with a slight increase in the supply held by one of its richest investor cohorts.  

Notably, in the last 24 hours, the XRP supply held by entities with a balance of 100 million—1 billion tokens (teal) has increased, accompanying a drop in the supply held by the 10 million—100 million cohort (black).

XRP supply held by whales. Source: Santiment

Meanwhile, the supply held by addresses with over 1 billion tokens (blue) was flat. This suggests that entities in the lower cohort are accumulating XRP to move into the upper cohort, signaling growing confidence and investment among larger market players.

XRP price bouncese after becoming “oversold”

From a technical standpoint, XRP’s gains today are part of an oversold bounce, a typical market reaction when an asset’s relative strength index (RSI) falls below 30.

Related: German gov’t $354M BTC sell-off: Yet more volatility incoming?

XRP/USD daily price chart. Source: TradingView

Additionally, XRP price has bounced after testing the lower trendline of its prevailing falling wedge pattern as support, akin to its April trend. If the fractal repeats, the next upside target for July appears to be around the wedge’s upper trendline near $0.45, up 5% from the current price level. 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.