After witnessing a slight pullback, XRP is in high gear to form a bullish reversal as momentum continues to build up.
Calling out this development, market analyst Trader Rai pointed out, “XRP is bouncing back strong after forming a textbook V-bottom pattern — a classic bullish reversal signal. Buyers are stepping in, eyeing a breakout toward the $2.3730 resistance.”
As XRP’s V-shape reversal gains steam, the fourth-largest cryptocurrency based on market capitalization has already surpassed the key resistance of $2.37.
According to CoinGecko data, XRP was up 5.3% in the past month to trade at $2.38 at the time of writing, showing bullish momentum that might see the altcoin register new heights.
What does an Increase in XRP ETF Leveraged Inflows Mean?
According to on-chain metrics provider Crypto Feed News, “XRP ETF leveraged Inflows Surge Despite Price Dip. Wall Street is loading up on $XRP. The 2x leveraged XXRP ETF has pulled in $106M AUM since April—$30M just last week, even as XRP price dipped.”
Therefore, this surge in XRP exchange-traded fund (ETF) leveraged inflows demonstrates rising risk appetite, speculative behavior, and investor interest in XRP.
This is because a leveraged ETF utilizes debt and financial derivatives to amplify the returns of the underlying asset.
For instance, a 2x leveraged XRP ETF aims to offer twice the returns of XRP’s daily performance.
This explains why leading trading firm Teucrium recently rolled out a 2x leverage XRP ETF product meant to aid short-term traders project daily price movements.
Meanwhile, the XRP community is optimistic that once banks start using it, this altcoin will witness exponential growth and soar to the $100 price zone.
