XRP price retreated in February, the fifth consecutive month in red, as the crypto market crash accelerated. This retreat continued on Monday as it remained below the key support level at $1.500. This article explores some of the top reasons why Ripple may rebound in March.
XRP Price May Rebound Amid Resilient ETF Demand
One of the top catalysts for the XRP price is that there is still demand for the spot ETFs. Data compiled by SoSoValue shows that spot XRP ETFs recorded over $58 million in inflows in February, much higher than the $15.5 million they had in January. These funds have never had a monthly outflow since their launch in November last year.
Canary’s XRPC holds over $259 million in assets, while Bitwise’s XRP, Franklin’s XRPZ, and 21Shares’s TOXR have over $257 million, $227 million, and $166 million in assets, respectively.
In contrast, Bitcoin and Ethereum ETFs continued to experience outflows in January. Bitcoin ETFs shed over $206 million in assets, while Ethereum funds had $369 million in outflows. These numbers are signs of resilient demand for the coin.
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XRPL RWA Growth is Gaining Steam
Meanwhile, data compiled by RWA shows that the XRPL chain is gaining market share in the real-world asset (RWA) tokenization industry, where it has become a major player.
XRPL chain has 200 projects with over $2billion in assets, a 9% monthly increase. This amount makes it bigger than other popular chains like Solana and Polygon, which hold $1.8 billion and $1.3 billion.
The top categories of its RWA ecosystem are stablecoins, US treasury debt, corporate bonds, and private equity. A good example of this is Ctrl Alt, which tokenized diamonds worth over $105 million on XRP Ledger in February.
The stablecoin supply in XRPL rose by 1.40% in 30 days to $340 million, while the 30-day transfer volume rose by 17% to $1.2 billion. This growth is important as it happened during a crypto market crash and as USDT and USDC market capitalizations dropped.
Technical Analysis Suggests Ripple Price May Rebound Soon
The daily timeframe chart shows that technicals are sending mixed signals. On the one hand, trend indicators like moving averages and the Supertrend suggest that it has more downside to go in the near term.
However, some oscillators point to a rebound as a bullish divergence forms. The two lines of the Percentage Price Oscillator (PPO) have formed a bullish crossover, while the Relative Strength Index (RSI) has moved from the oversold level of 16 in January to the current 40.
Therefore, based on its relatively strong fundamentals, there is a possibility that the XRP price will rise to the psychological level at $2, which is about 50% above the current level. This view is also based on the double-bottom pattern it formed on the 12-hour chart.
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