XRP price continues its downtrend despite its recently launched ETF, attracting millions of funds. Although there is no massive action on the charts reflecting the inflow of funds, something is brewing underneath.
Ripple firm’s coin XRP, the fourth largest coin by market capitalization, is currently trading at $2.21 after gaining more than 0.6% during the past 24 hours. Although it seems like nothing much is happening when looking at the charts, ETF companies are showing increased interest in launching XRP ETFs.
Grayscale and Franklin Templeton launched their Exchange Traded Product (GXRP) last Monday, and 21shares’s ETF will be trading on the New York Stock Exchange, coming Monday. On the first day of trading, Grayscale and Franklin Templeton saw more than 60 million inflows.
These ETPs, combined with the $16.4 million inflows from Canary Capital’s XRPC and $17.7 million brought in by Bitwise’s XRP funds, brought the category a total of $164.1 million worth of net inflows for the day.
With so much activity happening in the ETPs, the prices are quite numb to the situation. XRP’s overall trend never changed despite all these ETP launches. Although there was no trend change, there were some subtle changes that happened in the XRP prices.
For instance, the falling XRP prices suddenly started to consolidate as it trades inside a falling wedge. The prices are close to the upper trendline as it consolidates, and XRP has not completely formed the wedge. In such a scenario, there is a question: whether the XRP breakout will occur after completing the pattern, or will it break out now?
With 21 shares of ETFs hitting the markets on Monday, there is a high chance that XRP will break above the $2.3 level even before completing the pattern.
If XRP breaks above the resistance level at $2.3, which also happens to be the upper trendline of the wedge, then the pattern will be discontinued. However, if XRP is rejected at the $2.3 level, then the coin will continue trading inside the falling wedge until the completion of the falling wedge.
If XRP plays by the conventional breakout rules, where the breakout height is equal to the height of the wedge at its widest, the coin will then reach $3.
