The popular cross-border token continues with its highly volatile trading sessions, but today it’s in the right direction. After yesterday’s slump to under $1.50, the asset has rebounded swiftly and now sits over 6.5% higher than it was 24 hours ago.
Here are some of the possible reasons why and what’s next.
ETF Inflows Keep Rocking
Although the entire market tanked yesterday, XRP’s nosedive was quite painful on its own, as the asset was violently rejected at $1.65 and slumped to under $1.50 within 24 hours. Today’s situation is rather similar in terms of more profound price moves, but in the opposite direction. BTC is up by 1.6% today, similar to BNB, while ETH has gained under 2.5%. XRP stands out with a daily surge of 6.6% as of press time and now sits at $1.55 after rebounding from the key $1.50 support.
This rather notable volatility has not deterred investors gaining exposure to the asset through the spot Ripple ETFs. Despite the sluggish start with $0.00 in reportable data on Monday, the funds went on a roll in the following three days, attracting $20.02 million on Tuesday, $18.04 million on Wednesday, and another $14.89 million on Thursday, which is our first possible reason behind the impressive rebound.
The cumulative net inflows have skyrocketed to yet another all-time high of over $1.76 billion. Other notable developments in XRP’s recent performance that could have pushed the asset’s price higher include whale activity, as these large market participants acquired over 1.5 billion tokens in 96 hours last week.
Short Squeeze?
Data shared by popular crypto commentator on X, Xaif Crypto, outlined the third possible reason behind today’s remarkable comeback. He noted that the XRP/USD trading pair printed a substantial surge in short liquidations of over 45% on the 4-hour chart. Such developments could lead to a deeper short squeeze as traders have to close their positions and buy tokens to cover their losses. Xaif added that longs followed with a “brutal +16.11% swing right after.”
Meanwhile, fellow XRP Army member Bird speculated that the token has just flashed a “green light” and predicted that the next move higher has begun after a “perfect leveraged long flush and backtest.” His first target sits at $1.80 by the end of the week, which is rather optimistic as of now.
Source: CryptoPotato
