XRP Price Prediction as Taker Buy/Sell Ratio Turns Bearish Despite Rising ETF Inflows
- Cryptocurrency
Crystal Kim- 5 minutes read
Ripple (XRP) price has reclaimed $1.58 as the broader crypto market recovers. These gains come despite an increase in selling pressure across multiple exchanges.
Data from SoSoValue also shows that inflows to XRP ETFs remain high, with this demand also pushing XRP price above resistance at the 200-day EMA.
XRP price is up by 5.2% today, September 25, to trade at $1.58 at the time of writing, with $6.76 billion in trading volume.
XRP’s Taker Buy/Sell Ratio Drops on Surging Selling Pressure
Data from CryptoQuant shows that the XRP Taker Buy/Sell reading has dropped below 1, suggesting that the selling pressure around XRP is increasing.
This reading has dropped to 0.94 on Binance, suggesting that the volume of sell-side orders surpassed the volume of buy-side orders. CryptoQuant analyst Arab Chain says that the drop to 0.94 suggests that there are more futures traders selling and not buying.
OKX has seen the lowest reading of 0.79, while on Bybit, the taker buy/sell reading stands at 1, suggesting that there are equal buy-side and sell-side orders.
This selling pressure may increase after North Korean hackers stole $157 million worth of XRP from the Bitget exchange.
ETF Inflows Persist Despite Weakening Futures Demand
Data from SoSoValue shows that there have been three straight days of inflows to XRP ETFs. The inflows to these products have reached $52.95 million, and they are on track to have their best week since the week ending August 28.
The ETF inflows come as adoption from institutions continues to grow. In a recent filing with the SEC, Envestnet Asset Management that manages $6.5 trillion in assets under management, disclosed that it holds XRP.
In the amended 13F filing, Envestnet revealed that it purchased 186,346 shares of the Bitwise XRP ETF that were worth $2.17 million as of June 30.
An earlier report by CoinGape also revealed that Goldman Sachs is currently the biggest holder of XRP ETFs with $86 million in total positions.
XRP Price Creates a Bull Pennant on the One-Hour Chart
The one-hour chart for XRP price shows that the price has created a bull pennant pattern that usually suggests that the trend is about to shift from a bearish one to a bullish one. The bull pennant also coincides with a 320% increase in XRP Ledger accounts, as earlier reported by CoinGape.
XRP is also testing the resistance at the upper trendline of the pennant. If it closes above this resistance, the price might gain by 5.95% to reach $1.63.
Still, this bullish sentiment could become invalid if the XRP price moves below the support of the pennant pattern. This drop could push the price to the support at $1.52.
The RSI on the one-hour chart has also risen to 56. This rise suggests that the momentum is favoring bulls. The RSI line has also moved above the signal line to suggest that bulls are tightening their grip.
However, the CMF reading of -0.03 suggests that the selling pressure is outweighing the buying pressure. If this selling pressure remains high, XRP price might move to test the support at $1.45.
