XRP Funds See $3.5M Inflows Amid 25% Gain, Altcoins Face Outflows

Products tracking altcoins experienced net outflows across the board last week, with the exception of XRP funds, indicating a potential shift in market sentiment. This development comes as risk-on sentiment returned to the altcoin market following a 90-day global tariff pause. While Ethereum and Solana-linked funds saw outflows of $38 million and $5 million respectively, investors injected $3.5 million into the newly launched leveraged XRP ETF. This influx of capital into XRP suggests a renewed interest in the cryptocurrency, which has maintained a 25% gain from last week’s lows, positioning it back into the conversation as one of the best cryptocurrencies to buy.

According to a report, institutions have not yet seen this as an opportunity, opting to sit on the sidelines due to persistent fear, uncertainty, and doubt (FUD). However, this could change as XRP nears a breakout from the falling wedge pattern that has defined its multi-month downtrend. The Relative Strength Index (RSI) is hovering near neutral at 48, indicating that selling pressure has eased. Additionally, the Moving Average Convergence Divergence (MACD) is approaching a potential golden cross, which is a typical trend-reversal signal. A confirmed breakout could mark the start of a major recovery, with a possible 75% move toward the $3.80 target. However, this target is contingent on continued demand, such as the approval of spot XRP ETFs.

XRP's recent performance has been bolstered by growing institutional interest and the highest number of ETF applications filed among altcoins. This spotlight on Ripple's potential in mainstream finance could further drive demand for XRP, potentially leading to a sustained recovery. However, the full impact of the ETF launch may not be completely priced into XRP price forecasts as institutions remain cautious. The market's reaction to XRP's recent developments will be crucial in determining its future trajectory.