Ripple [XRP] has had mixed sentiments over the past few days after trading to its lowest level since November 2024. The altcoin dipped briefly below $1 and recovered shortly after.
This discount did not go unnoticed. Whales and institutional investors returned aggressively during the dip, hinting at potential price recovery.
Whales buy aggressively as XRP ETF inflows return
Recently, whales bought over 72 million XRP tokens in a single day after the dip. Whale holdings increased from 12.09 billion on August 12 to 12.18 billion tokens on the following day.
As such, Ali Martinez wondered if they were preparing for a bull rally.
Institutions backed the ongoing whale accumulation as XRP ETF inflows turned green after four days of inactivity. As per SoSoValue, Bitwise XRP ETF accounted for all the $2.25 million in daily net inflow.
Bitwise XRP ETF leads by a cumulative net inflow of $512 million, followed by Franklin at $426 million. Only the 21Shares XRP ETF has net outflows of $20 million.
More institutions jumped into the trend, with Morgan Stanley revealing their $1 million XRP exposure. The capital was invested through XRP ETF positions issued by Franklin, Bitwise, and Rex-Osprey, as per the recent 13F filing to the SEC.
Even with inflows turning positive, the products accounted for only 1.49% of the asset’s market cap.
Is XRP’s bottom forming at $1?
Moreover, the price action remained bearish, hinting at a potential reversal. The altcoin had been trapped in a brutal descending structure since its $3.66 peak.
The current support at $1.0020 has held, with four touches of this level on the hourly timeframe. It is above the mid-range of the descending channel, with bulls defending against a breakdown of the $1 zone.
The momentum indicator is declining, reinforcing bear strength. Additionally, the AI Predictive Flow is flashing that XRP might continue declining despite capital returns.
Therefore, the lag around $1 suggests that a bottom may be forming if put together with buying from whales and institutional backing through ETFs.
On top of that, TD Sequential had signaled buy on the monthly chart. Furthermore, over 3 billion tokens were accumulated at this level, confirming it is a strong demand zone.
However, should bears outnumber bulls at the support, the altcoin could extend its downtrend below $1.
Final Summary
- Whales bought 72 million XRP in the past 24 hours, as XRP ETF inflows turned positive after four inactive days.
- XRP price continued to hold above $1, with bulls rejecting a breakdown on the hourly chart in four instances.
