In the past week, XRP decisively outperformed its main rivals, Bitcoin (BTC) and Ethereum (ETH), in terms of capital flows. Moreover, it recorded an impressive $2.7 million in inflows. Is this a symptom of a potential coin rally?
CoinShares indicates interest in XRP
In the past week, XRP received investors’ attention, while Bitcoin and Ethereum experienced struggling sell-offs.
This is confirmed by a new report published by CoinShares, a European giant in cryptocurrency asset management. It captures the evolving trend in fund flows in investment products based on digital assets.
Analysis of the report shows a clear deceleration of the previous wave of inflows into investment products related to the largest cryptocurrencies. A small outflow of funds worth $16 million was registered recently, which followed a record 11 weeks of continuous increases.
In contrast, three slightly smaller projects gained during the same period. These were Solana (SOL), Cardano (ADA) and XRP, with fund inflows of, respectively: $10.6 million, $3.0 million and $2.7 million. While in the case of the first two these inflows had been observed for quite some time, the Ripple product appeared in this group quite unexpectedly.
Geographic variation in capital flows to the crypto sector
Despite the general reversal of the capital flow trend, trading activity has maintained solid values, remaining higher than the average at the beginning of the year. In the past week alone, turnover totaled $3.6 billion, representing a significant increase over the annual average of $1.6 billion.
The report also details significant changes in regional flows. The United States experienced an outflow of $18 million, a significant decrease. Germany was also a country that recorded a small withdrawal, with the value of these transactions amounting to $10 million.
However, Canada and Switzerland showed the opposite trend, continuing the inflow of funds into the sector. Canada recorded increases of $6.9 million, while Switzerland recorded even higher positive values, closing at $9.1 million.
XRP from a technical point of view
Meanwhile, XRP is defending a very important support point at $0.58. At the same time, the coin almost touches the 200-day moving average and is clearly bouncing off it. Around the SMAs themselves, we also observe interesting behavior. Indeed, there is a bullish cross between the 100-day and the aforementioned 200-day SMA. Thus, hopes for a significant rebound are emerging.
