XRP recorded a significant surge when it successfully broke through the $1.45 level, but this movement came with a major anomaly as there was no flow of funds into the XRP ETF.
At the time of writing, the price of XRP was at $1.4236, up 0.01% since it opened early Thursday in the Asian session.
This situation raises questions among investors because usually, a strong price increase is accompanied by the participation of institutional investors through instruments such as ETFs.
This increase in the price of XRP is seen to be driven more by retail investors than institutions.
The trading volume pattern shows that market activity is still active, but the absence of large funds reflects that institutional investors are still taking a wait-and-see approach.
This makes the current rally look fragile even though the price momentum remains positive.
There is some speculation as to the exact cause of this increase.
Some believe that large investors may be accumulating XRP directly in the spot market without going through the ETF.
However, some also see it as a FOMO effect among retail investors, which usually doesn’t last long when sentiment changes.
The lack of institutional fund flows also signals that there are still concerns, especially from a regulatory and price stability perspective.
Institutional investors are typically the main drivers of long-term bullishness, and without their support, any price spike risks a sharp correction.
For now, the direction of XRP remains uncertain.
If fund flows into ETFs start to increase, it could further solidify the price rally.
However, if things remain the same, the rally could potentially lose momentum.
While XRP has shown impressive price performance, the lack of institutional support makes this move fraught with uncertainty and high risk for investors.
