Key Insights:
XRP ETFs have surpassed $1 billion in inflows with consistent daily growth since launch, indicating strong investor interest.
XRP forms an inverted head-and-shoulders and double-bottom pattern, hinting at a potential rally to $3 if support holds.
Investors are rotating funds out of Bitcoin and Ethereum into XRP, highlighting a shift in sentiment across crypto markets.
XRP dropped by 1.2% on December 17, extending a correction phase that began after its sharp rise to $3.6575 in July. The token, however, has shown signs of stabilizing near the $1.8140 support level. This comes as XRP forms a rare bullish chart pattern, potentially pointing to a price reversal.
Recent data from SoSoValue confirms growing demand for XRP-based exchange-traded funds. These spot ETFs, introduced just weeks ago, have already accumulated over $1 billion in inflows. This figure outpaced Ethereum ETFs, which took longer to cross the same milestone. Notably, XRP funds have reported positive inflows every single day since launch, with the lowest being $8.2 million on November 18.
Potential Sector Rotation From Bitcoin and Ethereum to XRP
The momentum behind XRP ETFs contrasts sharply with investor sentiment in other major cryptocurrencies. Bitcoin and Ethereum funds have witnessed heavy redemptions, with Bitcoin ETFs shedding more than $600 million over two days and Ethereum funds losing over $500 million within four days. The shift suggests a possible reallocation of capital into XRP from other crypto assets.
Source: TradingView
Despite trading below all major moving averages, XRP has developed a bullish inverted head-and-shoulders formation. This pattern, visible on the daily chart, points to a potential rally toward the $3.00 mark, representing a 57% upside from the current price. Additionally, a double-bottom pattern at $1.8140 has emerged, reinforcing the case for a possible reversal.
Outlook Hinges on Key Support Holding
A sustained move above the neckline of the head-and-shoulders pattern could trigger renewed buying interest. However, failure to hold the $1.8140 support level may invalidate the bullish setup. Analysts are watching this zone closely, given its significance in recent price action.
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