XRP ETFs Fuel Price Rally, But Can Support Hold?
XRP ETFs have gone three weeks without a single day of outflows, pulling in $111 million since August 5. Over this period, XRP's price rose from below $1 to a high of $1.66 on August 22 before falling back to $1.44 and then reclaiming the $1.40 level.
The inflows into XRP ETFs were not entirely responsible for the price increase, as other factors such as President Trump's meeting with Ripple CEO Brad Garlinghouse and a bullish Bitcoin market also contributed to the rally.
While the streak of inflows gives XRP's price support, it is not strong enough alone to hold the price above $1.40. The total net assets of XRP ETFs are worth around 1.54% of XRP's total market cap, and daily net inflows can only absorb a small percentage of selling.
The CLARITY Act, which would classify XRP as a digital commodity under Federal law, is also seen as a potential catalyst for further price increases.