XRP price pulled back slightly on Monday as sentiment in the crypto industry worsened and the Fear and Greed Index exited the greed zone. Ripple token was trading at $1.4096 on Monday, down slightly from last week’s high of $1.5083. Still, the coin has formed a double bottom pattern, pointing to a rebound as ETF inflows jump.
XRP price retreats as Crypto Fear and Greed Index slips
Ripple token retreated slightly as sentiment in the crypto industry worsened. Data shows that the Crypto Fear and Greed Index dropped from the greed zone of 61 last week to the neutral point at 51.
The Fear and Greed Index has retreated as investors reacted to the major risks that happened in the industry this weekend.
For example, there are fears of market manipulation in the industry after the spectacular rise and collapse of RaveDAO, a token that moved from $0.5 to a high of $28 and then plunged to below $1 within a few days. ZachXBT has warned that the price action is a sign of market manipulation by insiders.
In another major development, hackers drained cryptocurrencies worth over $225 million from a top player in the DeFi industry. As a result, investors pulled over $5 billion from Aave, the biggest lending protocol in the industry. This hack came a few weeks after hackers drained tokens worth over $200 million from Drift.
On the positive side, data shows that investors are buying XRP ETFs aggressively. Spot XRP ETFs added over $65 million in assets this month, a big turnaround as these funds shed over $30 million last month.
Bitwise is still the biggest player in the XRP ETF industry with over $331 million in assets, and is then followed by Canary, Franklin, and 21Shares. Grayscale’s GXRP is the smallest fund with over $68 million in assets.
The ongoing XRP ETF inflows mirror those of other tokens like Bitcoin, Solana, and Ethereum, which added millions of dollars in assets this month.
In one of the most important news, the XRP token was expanded to the Solana ecosystem through a bridge with LayerZero. The expansion led to the launch of wXRP, which is pegged to XRP. As a result, it is now possible to trade the wrapped token on popular Solana DEX networks like Raydium.
Another positive is that the Ripple USD (RLUSD) stablecoin is doing well, with the market capitalization rising to over $1.4 billion. Data shows that the volume of the RLUSD traded in the last 30 days stood at over $5 billion.
XRP token price technical analysis
The daily timeframe chart shows that XRP token has remained inside a narrow range for nearly three months. It has remained inside the key support level at $1.2635 and the neckline at $1.6073, its highest level on March 17. A double bottom pattern often leads to a strong bullish breakout over time.
The token’s Bollinger Bands indicator has also narrowed substantially in the past few weeks. In most cases, the narrowed Bollinger Bands often leads to a squeeze in either direction. In this case, because of the double-bottom pattern, chances are that it will have a bullish breakout.
If this happens, the next important target level to watch is the neckline at $1.6047. A surge above that level will point to more gains, potentially to the psychological level of $2.
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