Ripple Price Prediction: XRP absorbed $190 million in capital inflow last week, and the bullish structure may further rebound to $3.66.

Ripple (XRP) followed Bitcoin into a pullback, currently reporting at 3.13 USD in early Asian trading on the 29th. XRP investment products absorbed 190 million USD in capital inflow last week, highlighting growing institutional interest. The decline of exchange reserves to 2.95 billion XRP indicates a decrease in selling pressure.

Despite the unstable situation last week due to market overheating and potential profit-taking, XRP still maintains a bullish structure, thanks to strong technical indicators and the growing interest from institutional and retail traders.

XRP attracts $190 million in capital inflow

XRP was one of the standout altcoins last week, with exponential growth in fund inflows for related investment products. According to a report released by CoinShares on Monday, the total fund inflow for XRP last week reached $190 million, thanks to positive market sentiment, particularly around altcoins.

Ethereum (ETH) led the rise, with inflows reaching $1.59 billion, marking the second highest weekly inflow in history. In contrast, Bitcoin (BTC) saw a slight outflow of $175 million, despite the BTC price still being close to its historical high of $123,218, highlighting the changing dynamics of the market.

CoinShares report emphasizes: "The inflow of these altcoins may not be driven by widespread enthusiasm, but rather by expectations regarding the potential launch of U.S. exchange-traded funds (ETFs)."

Polymarket believes that there is an 86% chance that the U.S. Securities and Exchange Commission (SEC) will approve the XRP spot ETF by the end of 2025.

Bloomberg analyst Eric Balchunas recently revised his prediction to 95%, further enhancing optimism about purchasing crypto products directly on the exchange without the complexities of owning the underlying assets.

At the same time, CryptoQuant's exchange reserves indicator shows that the number of tokens held by exchanges has significantly decreased, especially on Binance. The blue line in the chart below sharply declined after reaching a peak of 3 billion XRP, averaging 2.95 billion XRP as of Sunday.

If this downward trend continues, the supply of XRP on the exchange will continue to decrease, which means that the potential selling pressure will lessen. Holders are moving their assets off the exchange, intending to hold for a longer period, which can also be attributed to their confidence in the ecosystem.

(Source: CryptoQuant)

Technical Outlook: XRP Bullish Structure Intact

As of Monday when this article was written, the price of XRP is currently $3.16. The Moving Average Convergence Divergence (MACD) indicator on the 3-day chart confirms the bullish momentum, maintaining the buy signal triggered when the blue line crossed above the red line on July 6.

If the buy signal is established, traders will maintain exposure to XRP or buy on dips, benefiting from the green histogram bars above the zero line.

The key focus point is the support level at 3.00 USD, which was tested on July 21 and has restricted price movements since early March. On the positive side, if XRP breaks through the previous historical high of 3.40 USD, it could attract risk-tolerant investors and pave the way for further rebounds to the current historical high of 3.66 USD.

However, considering the downward trend of the Relative Strength Index (RSI), traders should consider lowering bullish expectations. Although the RSI remains in the bullish zone at 66, it shows signs of weakness, indicating that bullish momentum is waning.

If the decline continues below $3.00, the support level of $2.95 tested last Friday will be crucial for the recovery of the upward trend. Other key areas that traders are watching include the 50-period Exponential Moving Average (EMA) at $2.42 and the 100-period EMA at $2.08 on the 3-day chart.

(Source: Trading View)