The XRP price slipped to a crucial support level today, May 28, as Bitcoin and most altcoins retreated. It bottomed at the important support level of $1.2710, its lowest point on February 28, April 2nd, and April 6 this year. This retreat could point to a rebound in the near term as several factors have converged.
XRP Price Technicals Point to a Rebound if Key Support Holds
The daily chart shows that the XRP price has been in a downward trend in the past few weeks, moving from a high of $1.5480 on May 14 to a low of $1.2711. This retreat coincided with the overall crypto market crash that affected Bitcoin and top altcoins.
A closer look shows that the Ripple token may rebound in the near term, especially if bulls manage to hold the key support level at $1.2710. That’s because it has formed what looks like a triple-bottom pattern, a common bullish reversal sign in technical analysis.
READ MORE: Nebius Stock Price is Flashing Red: Is a Deep Reversal Coming?
There are signs that the token is forming a hammer candlestick, which is characterized by a small body and a long lower shadow. In most cases, this pattern is often followed by a rebound.
If this happens, XRP price will likely rebound to the psychological level of $1.50, which is about 15% above the current level. However, this view will only be confirmed if the coin remains above the key support level at $1.2710. A break below that level will point to more downside, potentially to the year-to-date low of $1.1176.
XRP ETF Inflows and RLUSD Stablecoin Growth
There are signs that the XRP price has some highly bullish fundamentals that may help to boost its performance. Data shows that the spot XRP ETF inflows are having the best month this year and the third-best since their inception.
They have added $118 million in assets this month, much higher than the $81 million they added in a month earlier. BitWise’s XRP ETF has accumulated over $446 million in inflows and now has $337 million in assets.
XRP is beating Ethereum and Bitcoin this month. Spot Bitcoin ETFs have had over $2 billion in outflows this month, while spot Ethereum funds have shed $401 million. This trend is a sign that the coin has moved to the accumulation phase.
More data shows that XRP Ledger’s network is doing relatively well. For example, the Ripple USD (RLUSD) token has gained over $697 million in assets since its inception. RLUSD has a market capitalization of $1.8 billion, while the adjusted volume of $11.1 billion was up by 61% MoM. This growth may continue after the CLARITY Act becomes law.
READ MORE: Crypto Crash Today: Why Are Bitcoin and AI Coins Falling?
