XRP's $2.16 billion long bet looks risky given its weak technical performance and institutional flows. The altcoin has declined over 6% this month, failing to realize its July gains, while Ethereum has gained 1.7%.
Technical Setup
XRP recently broke below the critical $1 level, adding pressure to its long-heavy setup. If bulls fail to reclaim $1, the breakdown could lead to deeper downside. According to SoSoValue, XRP ETFs have seen only $3 million in net inflows in August, compared to Ethereum's $2 billion.
On-Chain Signals
However, some on-chain signals and liquidity flows suggest a potential rebound. The XRP/ETH ratio is expected to rebound based on key technical signals. Token Terminal data shows RLUSD was the fastest-growing asset over the past seven days, adding $132 million, while Ripple was the fastest-growing issuer.
Market Outlook
If liquidity continues to build and the XRP/ETH ratio recovers, the current weakness could turn into a stronger rebound setup. This suggests XRP bulls may have more conviction behind the trade than the current price action indicates.