XRP price has continued to consolidate over the past few months despite rising inflows into exchange-traded funds (ETFs). Ripple was trading at $1.3925, inside a range it has remained since February this year. This price is down by double digits from its all-time high and may have a big drop as the XRPL chain fees plunge.
XRP ETFs Jump as XRPL Chain Fees Tumble
Data shows that spot XRP ETFs are having their best month this year, with inflows soaring. These funds have now added over $81 million in assets this month, a big increase from last month’s outflows of $31 million.
These inflows mirror those of other cryptocurrencies. Bitcoin ETFs have added over $2.4 billion in assets this month, while Ethereum funds added over $500 million. This happened as the Crypto Fear and Greed Index moved from the extreme fear zone of 10 to a greed zone.
Still, more data shows that the XRP network is struggling, with the number of addresses continuing to drop. Also, the total value locked (TVL) in its network has dropped to $48 million, making it an insignificant player in an industry with billions of dollars in assets.
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At the same time, the Ripple USD (RLUSD) supply in the network has stalled at $1.4 billion and is no longer growing as it did a few months ago. Most of the RLUSD tokens in circulation are on the Ethereum network.
As a result, the XRPL network has made just $14k this month, down from last year’s high of $440k. This explains why the token’s burn rate has continued to fall and remains insignificant.
XRP Price Prediction: Technical Analysis
The weekly chart shows that the XRP price has come under pressure in the past few months. It is about to form a mini death cross pattern as the spread between the 50-day and 100-day moving averages crosses. It also formed a double-top pattern with a neckline at $1.6315.
The token is slowly forming a bearish pennant pattern, which normally leads to a strong bearish breakout. If this happens, the next key target to watch will be at $1.0. The bearish outlook will be invalidated if it moves above the $1.60 resistance level.
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