The XRP price remained under pressure in the past few months as investors dumped Bitcoin and most altcoins. Ripple dropped below $2.20 on Wednesday, down sharply from the year-to-date high of $3.6565. So, is it safe to buy the dip as XRP ETF inflows rise?
XRP ETF inflows are continuing
The XRP price has retreated in the past few months despite some notable news in the network. The most important news was the recently-approved Canary XRP ETF (XRPC), which has become one of the most successful launches this year. Its first-day volume was the highest one this year, and its inflows have remained at an elevated level.
The most up-to-date data shows that the XRPC ETF has already had over $276 million in cumulative inflows and has over $277 million in net assets. This growth is notable as the fund has already passed the REX-Osprey XRP ETF, which has over $125 million in assets.
More XRP ETFs will likely be approved this week, a move that will likely lead to more inflows since these ones are run by more popular companies like Invesco and Franklin Templeton.
READ MORE: Here’s why the XRP price is crashing as XRPC ETF inflows soar
Top Ripple news
XRP has also had some notable news events in the past few weeks. For example, the developers hosted the Rippe Swell event that had some notable announcements. The most important one was that Ripple Labs received a $500 million investment at a $40 billion valuation.
Citadel and Fortress made the investment, which is expected to make it easy for the company to continue its expansion. The investment came at a time when Ripple Labs had been making some notable moves to boost its growth.
Ripple Labs acquired Hidden Road, creating Ripple Prime. It recently bought GTreasury, a company that helps institutions manage their treasuries. Additionally, Ripple bought Rail, a company involved in the stablecoin payment industry.
The other crucial Ripple news recently is the ongoing growth of Ripple USD (RLUSD), which has now crossed the $1 billion asset mark. Over a third of its assets are in the XRP Ledger, which is a good thing.
The main reason why the XRP price has underperformed despite this positive news is because of the ongoing crypto market crash that has affected all coins. Bitcoin has plunged from the all-time high off $126,300 to $90,000, while the market cap of all tokens slumped by over $1.2 trillion.
XRP price technical analysis
The daily timeframe chart shows that the XRP price has been in a strong downtrend, moving from the year-to-date high off $3.6 in July to $2.2 today.
It has dropped below the 38.2% Fibonacci Retracement level and formed a death cross pattern. A death cross happens when the 50-day and 200-day Exponential Moving Averages (EMA) cross each other.
On the positive side, the coin has formed a triple-bottom pattern at around $2.05. This pattern is often a bullish reversal sign. Therefore, there is a slim chance that the XRP price will bounce back as long a it remains above the triple-bottom level. A drop below the triple-bottom level will point to more downside, with the immediate target being last month’s low of $1.7662.
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