Ripple (CRYPTO: XRP) climbed for three consecutive days, extending a modest recovery that began Thursday after the token dropped to an important support level. This rebound may be the start of a comeback as third-party data points to increased accumulation by smart money investors.
XRP ETF Inflows are Accelerating
There are signs that smart money investors are accumulating XRP tokens, a sign that they expect it to rebound after being in a five-month consolidation.
SoSoValue data shows that spot XRP ETFs have diverged from their Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) peers. These funds added over $11.8 million in assets on Friday, bringing their weekly gains to $15.2 million. They added $131 million in inflows in May, their best month since their launch last year.
On the other hand, spot Bitcoin ETFs shed $2.43 billion in May, the worst monthly performance this year. Ethereum funds lost $540 million in May, the worst performance since December last year.
The ongoing buying by Wall Street investors, including Morgan Stanley (NYSE:MS) is a bullish sign as the coin has remained inside a narrow range in the past few months. It has stayed between the key support and resistance levels at $1.2740 and $1.5486 since February.
One potential reason for the buying is that some key XRP Ledger metrics are improving. For example, according to Messari, real-world assets on the XRPL network jumped by 124% in the first quarter to $2.25 billion. Also, average daily transactions rose by 35% to 2.48 million.
More data shows that XRP Ledger's role in the Real-World Asset tokenization industry continues rising. It now has $3.58 billion in represented value, up by 10% in the last 30 days. Its stablecoin transfers surged by 94% in this period to $4.6 billion.
XRP Price Chart Suggests a Rebound is Possible
It is still too early to predict XRP's next move as it remains inside the narrow range it entered in February. However, the ongoing ETF accumulation and the fact that it has dropped to the key support at $1.2740 is a sign that it may be bottoming.
If this happens, the coin may continue rising, potentially to the upper side of the channel, which is about 15% above the current level. A move above that price will point to further gains, potentially to the psychological point at $2.10. However, a drop below the lower side of the channel at $1.2740 will invalidate the bullish outlook.
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