XRP price targets 10% gains in uptrend as Ripple funds receive $500,000 from institutions

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  • XRP funds recorded net institutional inflow of $500,000 in the past week. 
  • Ripple whales distributed their XRP token holdings while retail investors accumulated in the last three weeks. 
  • XRP price is likely to rally to the $0.68 target in its ongoing uptrend. 

XRP price sustained above the $0.60 mark, early on Tuesday. The altcoin is in an uptrend, amidst rising capital inflow from institutional investors to XRP funds. Over the past three weeks, large wallet investors have distributed their XRP token holdings, and retail traders have scooped up the altcoin, supporting a bullish thesis.

Also read: Ripple hits new milestone in payments, likely catalyst for XRP price

Daily Digest Market Movers: XRP funds receive institutional capital, retail traders accumulate Ripple

  • XRP funds have received an inflow of $0.5 million from institutional investors in the past week, and the year-to-date total is $13 million, according to data from CoinShares’ latest report.

Weekly crypto fund inflowxs

Weekly crypto fund inflows by asset, as seen in CoinShares report

  • Institutional capital inflow is considered bullish for the asset as rival altcoins like Litecoin and Tron, recorded outflows in the past week. 
  • While institutions poured capital in XRP funds, large wallet investors, whale segments holding between 100,000 and 10 million tokens have distributed their holdings of the altcoin. 
  • Based on data from crypto intelligence tracker, Santiment, whales in two segments, 100,000 to 1,000,000 and 1,000,000 to 10 million shed their XRP holdings between November 4 and 21, while retail trader cohorts holding between 10 and 100,000 XRP tokens have accumulated the altcoin.

XRP token accumulation by retail

XRP token accumulation by retail, distribution by whales

  • As seen in the chart above, retail XRP token accumulation is typically followed by a sustained rally in the asset’s price, similar outcome can be expected following the ongoing event. 
  • On-chain metric Market Value to Realized Value (MVRV) indicates the average potential profit/loss that investors who acquired XRP in the last 30 days will realize if they all sell at current price. 
  • According to Santiment data, MVRV ratio (30 days) is currently -0.97, XRP holders who scooped up the token in the past 30 days would therefore realize a loss at the current price of $0.62. This implies, traders are less likely to sell the asset, leaving room for a continued rally in the altcoin. 

MVRV Ratio

MVRV Ratio (30 days) and price 

Technical analysis: XRP price rally could extend, 10% gains on the horizon

XRP price is in an uptrend in November 2023. The altcoin is on track to extend its gains, with the recent developments in the altcoin. XRP price eyes the 50% retracement level of the decline from the July 13 top of $0.93 to Aug 17 low of $0.42.

XRP price is likely to rally to the $0.68 mark, over 10% gains from the current level. The altcoin could find support at the 50-day Exponential Moving Average (EMA) at $0.59, in the event of a decline. 

XRP/USDT chart

XRP/USDT 1-day chart

A close below the 50-day EMA could invalidate the bullish thesis for the asset and suggest further correction in XRP price.

Bitcoin, altcoins, stablecoins FAQs

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.