The XRP price dropped to a crucial support level today, Dec. 11, continuing a downward spiral that has been going on since July. After peaking at a record high of $3.66, the token dropped to a low of $2. So, will the Ripple price rebound as the XRP ETF inflows rise and key Ripple USD (RLUSD) metrics soar?
XRP Price Prediction as it Sits at a Key SupportÂ
The daily timeframe chart is sending mixed signals about the XRP price. It has continued to make lower lows and lower highs in the past few months as the downtrend gained steam.
Ripple token moved below the lower side of the symmetrical triangle pattern, which is shown in black. Moving below that triangle confirmed the bearish forecast.
XRP price remains below the Supertrend indicator, which is a sign that the downtrend is gaining momentum. It also dropped below the short and long-term moving averages.
Near-term momentum favors bears, meaning that the token may keep falling to the next important target at $1.8200, its lowest level in November this year. A drop below that level will point to more downside as sellers target the next important support at $1.7618, its lowest level in October when liquidations jumped.
All hope is not lost, though. A closer look at this chart shows that the XRP price has slowly formed an inverse head-and-shoulders pattern, which may lead to more upside in the coming weeks. Odds of such a rebound are low unless there is a prolonged bull run in the crypto market.
XRP ETF Inflows and RLUSD GrowthÂ
The bearish XRP price forecast is primarily because of the ongoing sentiment in the crypto industry as Ripple is doing relatively well.
One of the most important bullish catalysts for the XRP price is that demand for the XRP ETFs is still high, a trend that may continue after the latest launch of the 21Shares XRP ETF today.
Data compiled by SoSoValue shows that all XRP funds have continued to have inflows despite the ongoing bearishness in the market. The funds added over $10 million in inflows on Wednesday this week, bringing the cumulative number to $954 million.Â
What is notable is that American institutional and retail investors are buying these funds even as the price remains in a deep bear market after plunging by over 40 % from the year-to-date high Â
A potential reason why investors are buying the XRP token is that it has become a major player in the stablecoin industry, where the total assets in RLUSD have jumped by 23% in the last 30 days to $1.3 billion, while the adjusted transaction volume rose by 140% to $2.9 billion.
In summary, XRP price technicals and fundamentals are sending mixed signals. While technicals are largely bearish, fundamentals like ETF inflows and stablecoin growth are highly bullish.
