XRP price eyes a rebound as ETF inflows rise, exchange outflows rise

$XRP’s price remained flat today, March, continuing the consolidation phase that began in February. However, ongoing inflows into exchange-traded funds and declining exchange supply suggest that a rebound may be on the horizon.

Ripple ($XRP), one of the top cryptocurrencies, was trading at $1.4282 on Thursday, inside a range it has been in the past few weeks. This price is 28% above the year-to-date low of $1.1137.

American investors are still buying $XRP ETFs, a sign that they expect it to rebound in the coming weeks. SoSoValue data shows that spot $XRP ETFs added $4.2 million in inflows on Wednesday as the crypto market rallyrestarted. It was the seventh consecutive day of inflows, with the cumulative total rising to $1.26 billion.

Increased buying by American institutional investors in a time when the price is stuck in a tight range is a sign of accumulation, which often leads to a strong rebound.

Another sign of accumulation is that $XRP outflows from exchanges are increasing. Data compiled by CryptoQuant shows that over 7 billion $XRP tokens exited exchanges in February. The total amount of $XRP tokens in exchanges has dropped to the lowest level in years.

A possible reason why investors are accumulating $XRP tokens is its strong fundamentals, including the ongoing Ripple USD growth. The stablecoin has accumulated over $1.5 billion in assets, with its daily volume soaring to over $1.5 billion.

RLUSD is benefiting from the rising demand from both retail and institutional investors, a trend that may continue after its integration on Ripple Prime.

$XRP price forecast: Technical analysis

Ripple price chart | Source: crypto.news

The eight-hour chart shows that the $XRP price has remained in a narrow range in the past few weeks.

A closer look shows that it formed a double-bottom pattern at $1.3350 and a neckline at $1.6745. This pattern normally means that short-sellers are largely uncomfortable placing short trades below that level.

The coin has moved slightly above the 50-day Exponential Moving Average. Also, the Percentage Price Oscillator has crossed the zero line, while the Relative Strength Index has jumped above 50.

Therefore, the most likely $XRP price forecast is bullish, with the next key target being the neckline at $1.6638. The bullish view will become invalid if it drops below the key support level at $1.3350.