XRP attracts capital for 11 consecutive days! ETF size surges to $844 million, price breaks above $3.1

As cryptocurrencies stage a strong rebound, XRP exchange-traded funds (ETFs) have seen net inflows remain positive for 11 consecutive days, with several XRP ETF assets under management (AUM) soaring to $844 million. On the technical side, XRP is about to touch the upper boundary of a downward price channel formed since early October. If it breaks through and holds above the 200-day EMA, the target price is $3.10, representing a potential upside of 48%.

XRP ETF Posts 11 Straight Days of Net Inflows, AUM Surges to $844 Million

(Source: SoSoValue)

Continuous net inflows into XRP ETFs have been the most important catalyst for the current price rebound. According to SoSo Value, after Bitwise, Canary Capital, and Grayscale launched multiple ETFs, these funds’ AUM skyrocketed to $844 million in just a few weeks. This growth rate is extremely rare in the history of the ETF industry, indicating institutional demand for XRP allocation far exceeds market expectations.

The significance of 11 consecutive days of net inflows lies not just in the absolute numbers, but in the persistence itself. In the ETF investment space, a single day of large inflows might be short-term speculation, but multiple days of steady inflows usually represent strategic allocation by institutions. These institutional investors include pension funds, hedge funds, and family offices, whose investment decisions are based on in-depth fundamental research and long-term return expectations.

The performance on December 1 is particularly noteworthy. Despite the market experiencing a sharp decline that day, these XRP ETFs still attracted $89 million in inflows. This contrarian buying behavior shows institutional investors view market pullbacks as buying opportunities, rather than risk warnings. In traditional finance, this “buying in panic” strategy is a hallmark of seasoned investors.

With $844 million in AUM, XRP ETFs have become the largest category of crypto ETFs outside of Bitcoin and Ethereum. By contrast, many small crypto ETFs still have AUM stuck in the tens of millions even months after launch. XRP ETFs reaching this level in just weeks reflects the token’s status in the eyes of institutional investors. These flows not only support price, but more importantly, provide depth and liquidity to the market.

Performance of the Three Major XRP ETF Providers

Bitwise XRP ETF: Focuses on low fees and professional management, attracting cost-sensitive institutions

Canary Capital XRP ETF: One of the first XRP ETFs launched, with a clear first-mover advantage

Grayscale XRP Trust: Saw a surge in liquidity after converting to an ETF, attracting legacy trust investors to switch over

Competition among these three providers also offers choices for investors. Different fee structures, management strategies, and liquidity profiles allow institutions to select the most suitable product for their needs. This competition also drives down fees and improves service quality, ultimately benefiting investors.

XRP Technical Analysis: Breakout Could Target $3.10

(Source: Trading View)

In the past 24 hours, XRP’s price surged 7% to $2.17, while trading volume grew 20% to nearly $5 billion, currently accounting for 4% of the token’s circulating market cap. This simultaneous price and volume increase is a hallmark of a healthy uptrend, indicating strong and genuine buying pressure.

The daily chart shows XRP is about to hit the upper boundary of the downward price channel formed since early October. This descending channel, defined by a series of lower highs and lower lows, represents the correction pressure of recent months. When price touches the upper channel boundary, it’s often a key moment for trend reversal. A breakout indicates an end to bearish control and bulls regaining dominance.

If price breaks this pattern and climbs above its 200-day exponential moving average (EMA), this would validate the bullish outlook for XRP. The 200-day EMA is one of the most important long-term trend indicators in technical analysis, widely viewed as the bull-bear dividing line. When price is above the 200-day EMA, it’s seen as a long-term uptrend; below it, a downtrend.

If this scenario unfolds, the first target price will be $3.10, which, based on the current price of $2.17, implies 48% upside potential. This target is not arbitrary, but based on previous highs and Fibonacci extension levels in technical analysis. $3.10 is close to a major resistance level from early 2024 for XRP; if broken, it opens up even greater upside potential.

Bullish RSI Divergence Signals Trend Reversal

Despite continued price declines, the Relative Strength Index (RSI) has not made lower lows, resulting in a bullish divergence. This is one of the most reliable reversal signals in technical analysis. Bullish divergence means that while price continues to fall, downside momentum is waning and selling pressure is being exhausted. Such divergence between price and RSI often signals an imminent trend reversal.

Here’s how a bullish RSI divergence forms: In a downtrend, price makes new lows, but the RSI does not follow suit and instead forms higher lows. This shows internal market structure is improving—even as price appears to fall, buying interest is accumulating. Once a catalyst appears, this pent-up demand can trigger a sharp price rebound.

For XRP, 11 straight days of net ETF inflows are exactly this catalyst. If ETF inflows persist or accelerate over the next few days, this will create a strong bottom for XRP. More importantly, if shorts are squeezed out, it could trigger an explosive rally. A short squeeze happens when a large number of short sellers are forced to close their positions, and their buy-to-cover orders generate new buying pressure, further driving up prices in a self-reinforcing upward spiral.

From a volume perspective, the current $5 billion daily trading volume accounts for 4% of circulating market cap, which is quite active. High trading volume alongside rising prices usually means buyers and sellers are fiercely contesting, with bulls starting to gain the upper hand. If volume continues to expand and breaks $6 billion, it will further confirm the strength of the uptrend.

Virtuous Cycle of Institutional Demand and Retail Sentiment

Sustained inflows into XRP ETFs not only directly create buying pressure, but more importantly, change market sentiment. When retail investors see institutions buying heavily, their confidence grows, prompting them to follow suit. This virtuous cycle between institutions and retail investors is a key mechanism in bull markets.

Meanwhile, as the market recovers, XRP’s strengths as a mature token are also becoming more apparent. Compared to high-risk emerging projects, XRP benefits from a clear legal status (with SEC lawsuits largely resolved), real-world use cases (Ripple’s cross-border payment network), and deep liquidity. These traits make it a top pick for institutional allocation.

Technical breakouts combined with fundamental catalysts provide dual support for XRP price forecasts. If it can break out of the descending channel and hold above the 200-day EMA in the coming week, the $3.10 target will be within reach.