The negative trend has also continued since March 5.
Demand for spot XRP exchange traded funds in the United States appears to have weakened significantly, as the funds have gone more than a week without recording a single day of net inflows.
Despite this, the underlying XRP token still managed to register some gains over the past week before its rally stalled around the 1.45 dollar level.
Investors Pull Back from XRP ETFs
Exchange traded funds that track the cross border token initially experienced a strong launch period that lasted about a month. During this time they attracted more than 1 billion dollars in cumulative net inflows. However, investor interest gradually began to fade. The first warning signs appeared on January 7 and January 20 when withdrawals of 40.80 million dollars and 53.32 million dollars were recorded.
January closed with another major outflow of 92.92 million dollars on January 29. Overall the month ended only slightly positive with 15.59 million dollars in net inflows. This was far lower than the 666.61 million dollars recorded in November and the 500 million dollars seen in December.
February showed some improvement as total inflows for the month reached 58.09 million dollars. Even so, concerns emerged as several trading days recorded zero net inflows. The same pattern returned last week. Data from SoSoValue shows zero inflow recorded on March 11 and March 13. Meanwhile the remaining three trading days posted losses, with 18.11 million dollars leaving the funds on Monday, 3.88 million dollars on Tuesday, and 6.08 million dollars on Thursday.
This negative trend actually stretches back further. The funds have not recorded a positive day since March 4.
XRP Price Rally Slows
Even with the decline in investor activity within ETFs, the price of XRP performed relatively well over the past week. The token climbed from a low of 1.34 dollars on Monday to a multi week high slightly above 1.45 dollars. However the rally lost momentum at that level and the price is now struggling to stay above 1.40 dollars.
Recent price action has remained within a narrow range. This has led several analysts to predict that a major move could be approaching. Crypto analyst Ali Martinez recently pointed out that XRP Bollinger Bands are tightening, a signal that often precedes a significant breakout.
He reinforced this view again today, noting that XRP is currently forming a triangular consolidation pattern that is nearing a critical point and could result in a price move of about 30 percent.#crypto#cryptonews https://t.me/coinsignalpublic https://coinsignals.net
