XRP Price: Rallies as Strong ETF Demand Pushes Assets Past $700 Million

TLDR

• XRP price rose 5% to $2.14 on December 2, recovering from Monday’s losses
• The token is forming a falling wedge pattern on daily charts, which typically signals a bullish reversal
• XRP ETFs have attracted $756 million in cumulative inflows since launching on November 13
• Total assets held by XRP ETFs now stand at $723 million, approaching the $1 billion milestone
• Technical indicators show a bullish divergence pattern while the Average Directional Index points to weakening downtrend momentum

XRP gained 5% on December 2, climbing to $2.14 after experiencing losses earlier in the week. The recovery came as Bitcoin and other cryptocurrencies rebounded from Monday’s decline.

The token is currently trading at $1.99, down 9.32% from its recent peak. Market capitalization stands at $120.6 billion with trading volume reaching $4.96 billion.

Technical analysis of XRP’s daily chart reveals a falling wedge pattern taking shape. This pattern connects high points from October 2, October 27, November 10, and November 28 on the upper side. The lower side links low points dating back to August.

The two trend lines are converging, which often precedes a price reversal. The MACD indicator shows a bullish divergence, where the indicator rises while the price falls. This pattern suggests weakening downward momentum.

ETF Inflows Drive Demand

XRP exchange-traded funds have seen strong institutional interest since their November 13 launch. Data from SoSoValue shows cumulative inflows of $756 million across 11 trading days.

The Canary XRP ETF leads with $349 million in inflows. Bitwise has attracted $167 million, while Grayscale and Franklin have brought in $128 million and $113 million respectively.

Combined assets under management for all XRP ETFs total $723 million. The funds are on track to cross the $1 billion threshold in the coming days.

November Performance and December Outlook

November proved difficult for XRP, with the token declining 13.8% according to CoinGlass data. December shows a smaller decline of 7.37% so far, suggesting improved performance this month.

The Average Directional Index has fallen to its lowest level since October 11. This indicator measures trend strength, and its decline suggests the current downtrend may be losing power.

Exchange reserves for XRP have been dropping over the past month. Lower exchange balances typically indicate reduced selling pressure as tokens move to private wallets.

A breakout above the falling wedge pattern would target the $3 level, representing a 40% increase from current prices. A drop below $1.82, the November 21 low, would invalidate the bullish setup.

The token has historically performed well in December. Combined with growing ETF demand and declining exchange reserves, conditions may favor a year-end rally.

XRP ETFs have now completed 11 trading days with consistent inflows across multiple fund providers.

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