XRP inflows and bullish derivatives set stage for 27% rally to $2.65
XRP is showing signs of a sustained bullish run as institutional and retail demand increases. CoinShares reported $245M of inflows into XRP exchange-traded products (ETPs) in the week ending Dec. 5, bringing year-to-date inflows to $3.1B. Spot XRP ETFs recorded 15 consecutive days of net inflows, adding $10.23M on Friday and pushing cumulative inflows toward $900M with AUM around $861.3M. Over 400 million XRP are locked in these products. On derivatives markets, funding rates flipped positive (0.0189%), and Binance long/short ratios show 72% of accounts long, signalling bullish leverage positioning. Trading platform data from Beacon/Hyperliquid corroborates a 72% long exposure (~$94.5M long vs $37.6M short). Technically, XRP trades above a four-hour symmetrical triangle; a close above the upper trendline near $2.15 targets a measured move to $2.65 (about 27% upside). A bullish daily close above $2.30 would further confirm structure break and open a potential path to $2.58, provided $2 holds as support. Risks include liquidation from crowded long positions and typical market volatility. This is market reporting, not investment advice.
Bullish
The article points to multiple converging bullish signals for XRP: large institutional inflows into XRP ETPs/ETFs, sustained spot ETF accumulation (15 straight days), and positive derivatives indicators (funding rates turned positive; long-biased Binance and Hyperliquid positions). Technically, price sits above a symmetrical triangle with a clear measured target to $2.65 upon a close above $2.15 and further confirmation at a daily close above $2.30. Historically, similar episodes where ETFs/ETPs accumulate supply and leverage positions skew long have preceded sharp multi-week rallies, as locked supply reduces available float and positive funding attracts momentum buyers. Short-term, the news could catalyze a fast upward move as algorithmic and momentum traders chase breakouts, increasing volatility and liquidation risk for crowded shorts or longs. Longer-term, sustained inflows and institutional adoption support higher price floors and reduced volatility if accumulation continues. However, risks remain: crowded leveraged positioning can amplify drawdowns on reversals, and macro or regulatory shocks could reverse sentiment quickly. Traders should watch ETF flow data, funding rates, open interest, key levels ($2.15, $2.30, $2.00 support) and manage position sizing accordingly.