XRP price is up 7% today, November 25, to trade at $2.19 at press time. The surge comes as institutions flock to newly launched XRP ETFs with inflows hitting $164 million yesterday, marking the second-highest single-day inflows since approvals began. With the broader market rebounding, could this spark a 25% climb to $2.74?
XRP Price Bounces 7% as Crypto Market Recovers
XRP was the biggest gainer among the top ten largest cryptos by market cap. The bounce has seen the token hold levels above $2, with the broader market recovery supporting the bullish narrative that it might extend gains.
According to CoinMarketCap data, XRP spot trading volumes soared by 55% to $6.34 billion, highlighting strong market participation. Futures trading volumes also topped $10 billion per Coinglass, while open interest increased by 11% to $4.05 billion.
The rising volumes reflect renewed trader confidence after weeks of muted activity. If the surge continues, XRP price may defend the $2 zone, positioning it for a potential continuation of its short-term uptrend.
XRP ETF Inflows Hit $164M Amid Grayscale and Franklin Templeton Debut
On November 25, a flurry of crypto ETFs started trading in the US. Grayscale, which also launched its first meme coin ETF, listed its XRP ETF at the New York Stock Exchange. The product saw $67 million in inflows on its first day of trading.
Wall Street giant Franklin Templeton also debuted its XRP ETF on November 25, with inflows totalling $62 million per SoSoValue data. Meanwhile, Bitwise and Canary Capital amassed $17 million and $16 million in inflows, respectively.
The inflows marked the second-best trading day for the products after the $243 million recorded on November 14. Per the data, XRP ETFs now have $586 million in cumulative net inflow.
The debut of Grayscale and Franklin Templeton’s XRP ETFs also came after a CoinShares report revealed surging institutional interest in the token. Per the recent report, XRP products recorded $89 million in inflows last week, a stark contrast from Bitcoin, Ethereum, and Solana, which saw $225 million, $589 million, and $156 million in outflows, respectively.
The institutional demand is also driving bullish narratives, with analyst Charting Guy speculating that the XRP price may reach $8. In an X post, the analyst identified a potential bull flag that may drive a strong upward reversal.
XRP Price Targets 25% Rally
XRP has been trading within a descending parallel channel on the one-day chart, with lower highs and lower lows. This shows the price has been in a prolonged downtrend since early October, with bears having the upper hand.
Following the recent gains, XRP broke above the midline of the channel and is aiming for resistance at the upper trendline at the 161.8% Fibonacci level of $2.57. If this happens, it may trigger a bullish reversal as sellers lose momentum and buyers take the upper hand.
However, for this bullish thesis to hold, the XRP price needs to move above the 50-day SMA level at $2.38. Such a move will indicate that the short-term trend is now bullish, and a 25% rally to the 200-day SMA at $2.74 might occur.
Nevertheless, the RSI is sitting at 46, a sign that the momentum remains bearish. Until this indicator crosses above 50, XRP price may continue trading within the descending channel in the near term.
To sum up, the 6% jump in XRP price today on $164 million ETF inflows marks a bullish inflection that may lead to a 25% jump to $2.74. However, until more buyers step in, XRP might continue with its bearish sideways movement until a fresh catalyst arises.
