XRP, ETF Fund Inflows 'Jump' Twofold...105-Day Sideways Trading in a Box Seems to End

▲ XRP (XRP, ETF/ChatGPT generated image

Nearly double the amount of funds flowed into the XRP spot ETF market in a single day. However, the asset's price has been trapped in a long-term sideways trend for over 100 days, increasing the likelihood of entering a long accumulation cycle.

According to U.Today, a cryptocurrency specialized media outlet, on May 20 (local time), the daily inflow into US XRP spot ETFs nearly doubled, surging from $730,400 to $1.48 million. SoSoValue data shows that this particular inflow was solely driven by Franklin Templeton's XRPZ fund. All other issuers, including market leaders Bitwise and Canary Capital, recorded $0 in inflows on that day. Consequently, the cumulative net inflow for all funds reached $1.39 billion, and the total net assets under management increased to $1.12 billion, accounting for 1.34% of the XRP market capitalization.

The primary catalyst for Franklin Templeton's latest fund inflow is believed to be recent political movements in Washington. A few days ago, the U.S. Senate Banking Committee passed a bipartisan bill on the U.S. cryptocurrency market structure by a vote of 15 to 9. For institutional investors, the passage of this bill served as a direct signal indicating reduced regulatory risk. The bill not only strengthens XRP's status as a digital commodity, resolving legal uncertainties, but also paves the way for the legitimate use of Ripple's stablecoin, RLUSD, in interbank cross-border payments.

Despite this daily surge in ETF liquidity, the price in the spot market continues to remain stagnant for a long period. According to the Bollinger Bands indicator on TradingView charts, the XRP price has been oscillating around $1.36 for 105 days, trapped in a narrow box range. Historically, this asset has frequently experienced long periods of sideways movement, with the previous accumulation cycle setting an all-time record of 915 days. The current price movement suggests that it is too early to expect an immediate breakthrough based solely on Franklin Templeton's specific fund inflows.

The overall market is likely to re-enter another multi-month accumulation cycle. Supply-demand zone data clearly shows the highest concentration of positions at the current price level. This implies that the XRP price is likely to continue fluctuating and trading sideways within its current range until large capital fully completes its position building. The U.Today article analyzes that rather than getting excited about short-term fund inflow news, one should observe when large forces complete their accumulation.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*