XRP news today: XRP Sees 134% Hot Capital Surge Amid Bearish Market Sentiment

XRP, the cryptocurrency associated with Ripple, has recently experienced a significant surge in capital inflows, despite an overall bearish sentiment in the market. This influx of capital, which saw a 134% increase in Hot Capital over a week, has raised questions about the potential for a short squeeze or further decline in the cryptocurrency's value.

According to insights from COINOTAG, analysts warn that the current bearish sentiment may overshadow the short-term capital influx. This sentiment is reflected in the market dynamics, where a considerable number of traders are shorting XRP aggressively, leading to a negative Funding Rate Aggregated by Exchange. This negative funding rate indicates that short positions are overwhelming market sentiment, further complicating the outlook for XRP.

Despite the surge in Hot Capital, XRP's price performance has struggled. In the last week, XRP declined by 2.65% daily and 1.62% weekly, reflecting the prevailing bearish market sentiment. This downturn points to a lack of genuine demand in the XRP market, as many key buyers have withdrawn their participation. As a result, the Taker Buy-Sell Ratio has consistently remained negative, illustrating sellers’ dominance over the market.

Particularly, sellers holding between 100k to 1 million XRP tokens currently dominate the market, accounting for a significant portion of exchange inflow, followed by those holding 10k-100k tokens. This high exchange inflow from this cohort indicates that retail investors are actively engaged in selling, reinforcing the ongoing bearish trend.

Historically, a surge in demand has often resulted in higher prices; when the metric last peaked, XRP reached $3.4 by January 2024. Thus, the increase in capital inflow could potentially spark another breakout in prices. However, the current levels are still approximately 72% lower than the peak of $7.66 billion recorded in December 2024. This discrepancy suggests that although interest in XRP is rising, market enthusiasm has not yet fully returned, indicating that there might be substantial room for future growth.

To match the speculative excitement witnessed in late 2024, XRP would require an influx of nearly $5 billion in additional capital. Recent data reveals a troubling trend for XRP; the Weighted Sentiment has recorded negative values most days over the past week, reflecting a lack of confidence among traders regarding the altcoin’s future direction. Only one day, April 28th, showed a brief spike in positivity.

Ultimately, even though Hot Capital has recoiled, other market metrics have yet to reflect this trend. Should this bearish sentiment persist, XRP risks falling towards $2.16. However, should speculative capital continue its upward trajectory, a rebound towards $2.3 could be plausible, provided market confidence is regained. Traders should remain vigilant as further developments unfold, with a critical eye on market trends and capital flows.