The market was caught off guard by the mixed signals presented in last week’s ETF flow data. Between December 22 and 26, Bitcoin spot ETFs experienced a staggering loss of $782 million, with all twelve products reporting net outflows. Following closely behind were Ethereum spot ETFs, which saw withdrawals totaling $102 million for the week. In contrast, Solana managed to see a slight increase of $13.14 million. Meanwhile, XRP stood out by attracting $64 million in inflows, outperforming many of its major rivals.
XRP’s Bullish Phase
When you analyze this divergence against the chart data, its significance becomes clearer. Currently, XRP does not exhibit characteristics typical of an asset in a strong bullish phase regarding price movement; it remains below key moving averages and is trading within a downward channel. The 50-, 100-, and 200-day moving averages are all trending downwards—a sign that suggests the prevailing downtrend is still intact.
Nevertheless, there seems to be a change in behavior at lower price levels. There appears to be reduced selling pressure; bounces are sustained longer than before, each subsequent dip is less severe than its predecessor and there’s insufficient follow-through on declines.
Similarly affected by significant downturns like BTC—currently also below critical averages—ETF flows indicate that institutions are actively reducing their exposure rather than reallocating funds strategically elsewhere. A comparable situation exists with Ethereum as well; instead of increasing investments during this period of uncertainty, capital appears to be retreating slightly back from these assets. Conversely for XRP investors seem inclined to boost their positions despite what looks like weak price action.
XRP’s Downtrend Slows
This presents an intriguing contradiction: ETFs do not chase momentum quite like retail investors do; they begin accumulating when risk-reward dynamics become favorably skewed—often prior to any clear chart patterns emerging. The inflow into XRP suggests strategic positioning rather than mere speculation at play here as theoretically it has slowed its descent significantly now that volume on declining candles has decreased—a classic indicator signaling seller fatigue—and RSI has stabilized within the low-to-mid-40s range while starting an upward trend.
The market isn’t aggressively selling off just yet but neither is it making bold bids either; regardless of how appealing narratives may sound—that behavior reflects accumulation trends more accurately supported by ETF data analysis showing while both Ethereum and Bitcoin ETFs faced substantial withdrawals throughout this week,XRP consistently attracted capital influxes during that same timeframe.
This points towards targeted trading rather than broad cryptocurrency allocations across various assets indicating no immediate guarantee for breakout potential ahead but validates need for XRP recovery above crucial moving averages alongside exiting current declining structures before confirming any trend shifts take place since typically ETF flows tend to trail behind price movements instead!