XRP ETF Inflows Fuel Bullish Sentiment Amid Leveraged Short Pressure

XRP's recent price action has caught attention as it has been on a rebound since August. A model created by CryptoSlate places XRP's potential price at $2.14 by late November, but notes that this is not the base case. Instead, six consecutive months of exchange-traded fund (ETF) inflows totaling around $474 million provide a strong demand backdrop for the token.

The ETF inflows are significant, with data from SoSoValue showing net inflows for XRP in the US reaching nearly half a billion dollars over the past six months. This sustained interest from institutions is adding momentum to XRP's recent price increase, which has seen it rise by about 23-24% over the last 30 days.

However, not all is rosy. CME data shows that leveraged funds are net short a significant amount of XRP, equivalent to around 115.7 million units. This could lead to increased pressure on traders carrying directional shorts if XRP's rebound continues.