XRP's Rollercoaster Ride: Bulls Hopeful Amid Market Downturn

Ripple's XRP has been on a rollercoaster ride in recent weeks, with its price plummeting alongside the broader crypto market. However, the asset has managed to maintain slight gains over the past seven days, providing a glimmer of hope for retail investors. The wider market has experienced a second week of massive outflows, with assets testing resistance levels. At press time, the total market capitalization stood at $3.19 trillion, a 2% decrease from the previous day.

Despite the market downturn, XRP bulls remain optimistic about the asset's upward trajectory. This year, XRP has emerged as the leader among top crypto gainers, thanks to institutional investment and partnerships. As a result, the asset has recorded double-digit inflows, soaring to above $2.6. This performance has allowed XRP to outpace Tether's USDT as the third-largest crypto by market capitalization for the second time in a month. Although the wider market crash saw XRP lose a portion of its gains last week, the asset managed to hold on to 3% of weekly inflows, which bulls view as a catalyst for a potential turnaround.

Currently, XRP is trading at $2.43, with a string of retail and institutional positions picking up momentum. Daily trading volumes have also gained traction, with funds tracking over $42 million. The bullish string of resistance for XRP kicked off in December, fueled by anticipation of positive regulatory developments in the United States. However, the asset's case with the US Securities and Exchange Commission has created a headwind, slowing its growth. With regulatory clarity on the horizon, XRP is poised to be among the major gainers in the crypto market.

The anticipation of a spot ETF in the United States is boosting the rally for XRP. Mirroring the success of Bitcoin products, the asset is expected to surge once regulatory approval is secured. Additionally, Ripple's partnerships with traditional finance firms and its roadmap for 2025 could fuel a new wave of investment in XRP. Crypto analyst MichaelXBT predicts that XRP is expected to top its all-time high soon, potentially leading to one of the largest short squeezes in crypto history.

While the wider market numbers remain in the red zone, positive flows in XRP can have a ripple effect on the broader altcoin market, leading to gains above