- XRP funds see rise in capital inflows from institutions last week, according to CoinShares digital asset fund flow report.Â
- SEC appeal and 1 billion token unlock are other key market movers for the altcoin.Â
- XRP trades at $0.5430, gaining nearly 2% on Monday.
Ripple (XRP) price on Monday is being influenced by the token unlock on October 1, XRP fund flows and sentiment among crypto market participants. XRP gains nearly 2% on the day, the altcoin trades above key support at $0.5200.Â
Daily Digest Market Movers: XRP funds sees rise in capital inflow
- CoinShares Digital Asset Flows Report shows XRP-based funds received $300,000 in capital inflows last week.Â
- In the same time frame, the two largest assets by market capitalization noted negative flows: Bitcoin recorded a $159 million in outflows, and Ethereum funds lost $28.9 million.Â
Fund flows by assetÂ
- The rising capital inflows to XRP is indicative of demand among institutional investors.Â
- XRP traders are watching the developments in the Securities & Exchange Commission’s (SEC) lawsuit appeal against the payment remittance firm.Â
- The SEC appealed against the final ruling, which imposed a $125 million fine on Ripple for the institutional sale of XRP tokens.Â
- Another factor influencing the asset is the 1 billion XRP token unlock, part of a scheduled token release by the payment firm. The release of a large volume of XRP tokens during each unlock negatively influences the asset’s price.Â
Technical analysis: XRP could extend losses by another 7%
Ripple started its multi-month downward trend in July 2023, post the top of $0.9380. The altcoin is likely to extend losses by 7% and sweep liquidity at $0.5026, a key support level for XRP. This level coincides with the September 6 low.Â
The red histogram bars on the Moving Average Convergence Divergence (MACD) indicator signal an underlying negative momentum in XRP price.Â
XRP/USDT daily chartÂ
If there is a daily candlestick close above the 200-day Exponential Moving Average at $0.5548, it could invalidate the bearish thesis. XRP could then attempt a recovery to $0.6000, the October 2 high and a psychologically important price level for the altcoin.Â