• XRP has seen an increase in institutional investment in the first week of 2023, with $3 million in inflows.
• This could be positive news as it reflects the trust that the market has in Ripple’s case against the SEC.
• The technical outlook is also positive, with XRP gaining stability above $0.31.
The cryptocurrency market has seen its fair share of volatility in the past year, and Ripple (XRP/USD) has been no exception. Investors have been closely watching the legal case between Ripple and the U.S. Securities and Exchange Commission (SEC) to determine the future of the digital asset. However, the latest CoinShares report shows that institutional investors are banking heavily on a Ripple win.
According to CoinShares, the first week of 2023 saw $3 million in inflows into XRP. On the other hand, investors exited $6.5 million and $3 million from Bitcoin and Ethereum, respectively. This could be positive news as it shows how much trust the market has developed in XRP. According to CoinShares, the inflows reflected improved clarity on Ripple’s case with the SEC.
Despite this positive development, XRP-associated investment products recorded $9.7 million worth of outflows. From a fundamental perspective, we could argue that it is still a double-edged sword for XRP as the case drags on. However, there are still positives to pick from the latest institutional inflow, with the settlement expected in the current first quarter.
The technical outlook also supports a potential XRP accumulation of around $0.31. XRP has gained stability above this support, and the price could surge from here. The Relative Strength Index (RSI) and other momentum indicators also show that XRP is in the buy zone.
Overall, it appears that the cryptocurrency market has developed a certain degree of trust in Ripple’s case against the SEC. As a result, institutional investors have increased their inflows into XRP, and the technical outlook is also positive. The settlement of the case is expected in the current first quarter of 2023, and it could be the deciding factor in the future direction of the digital asset.