Two new XRP ETFs have just absorbed 80 million tokens upon launch, as the price shows a bullish technical setup after hitting the key resistance at $2.20. Could this massive accumulation mark the start of a new bullish cycle for Ripple's altcoin? Technical signals and institutional demand are converging to create a particularly intriguing momentum.
The launch of two new XRP ETFs has triggered a spectacular absorption of 80 million tokens within the first days of trading. This massive accumulation reflects renewed institutional appetite for Ripple’s digital asset, in a context where regulated investment vehicles are gaining ground in the crypto market.
ETFs now represent a preferred gateway for traditional investors seeking exposure to cryptocurrencies without directly managing asset custody. In the case of XRP, this dynamic arrives after years of legal battle with the SEC, a battle largely won by Ripple that has strengthened regulatory clarity around the token.
The absorption of 80 million tokens is far from insignificant when considering the available liquidity on exchanges. This sustained demand exerts natural upward pressure on the price, especially since tokens held by ETFs are removed from the market’s active circulation. Fund managers are accumulating long positions, mechanically reducing the supply available for spot trading.
From a technical standpoint, XRP is displaying a particularly interesting configuration. After testing the psychological resistance zone of $2.20, the price has formed what appears to be a bullish flag, a classic bullish continuation pattern in technical analysis. This chart pattern suggests a temporary pause before a potential resumption of the upward movement.
A bullish flag is characterized by consolidation in a descending channel following an impulsive bullish move. In this case, XRP had experienced strong progression before hitting $2.20, a zone where sellers temporarily took over. The current consolidation, accompanied by decreasing volumes, corresponds exactly to the expected scenario for this configuration.
If the pattern is confirmed with an upward breakout, traders anticipate a price target calculated by projecting the height of the flag’s pole. This could propel XRP toward new highs, potentially beyond $3.00.
However, validation of this scenario requires a decisive breakout with expanding volumes above $2.30 to $2.50. Otherwise, XRP could break its trendline to the downside and potentially reach its FBB midline around $0.93.
The arrival of XRP ETFs is profoundly changing the market structure. Unlike retail investors who actively trade, institutional funds generally adopt buy and hold strategies over the medium to long term. This approach reduces short term volatility and creates a more solid support floor.
The 80 million tokens accumulated represent significant valuation at current prices, demonstrating institutional confidence in Ripple’s fundamentals. The RippleNet network continues its expansion in cross border payments, with banking partnerships multiplying, particularly in Asia and the Middle East.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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