XRP surges as $300,000 lands in Ripple funds, traders digest SEC appeal in lawsuit

• XRP funds saw an increase in capital inflows from institutions last week, according to the CoinShares Digital Asset Fund Flow Report.
• The SEC call and the unlocking of 1 billion tokens are other key market drivers for the altcoin.
• XRP is trading at $0.5430, gaining nearly 2% on Monday.

Monday’s Ripple (XRP) price is influenced by the October 1 token unlock, XRP fund flows and the sentiment of crypto market participants. XRP gains nearly 2% on the day, with the altcoin trading above key support at $0.5200.

Daily Digest Market Movers: XRP funds see surge in capital inflows

• The CoinShares Digital Asset Flows report shows that XRP-based funds received $300,000 in capital flows last week.
• During the same time frame, the two largest assets by market capitalization saw negative flows: Bitcoin saw outflows of $159 million and Ethereum funds lost $28.9 million.

Flows of funds on the asset

• The increase in capital flows to XRP indicates demand among institutional investors.
• XRP traders are watching developments in the Securities and Exchange Commission (SEC) appeal process against the payment remittance firm.
• The SEC appealed the final ruling, which fined Ripple $125 million for the institutional sale of XRP tokens.
• Another factor influencing the asset is the unlocking of 1 billion XRP tokens, part of a scheduled token launch by the payment firm. The release of a large volume of XRP tokens during each unlock negatively influences the price of the asset.

Technical Analysis: XRP Could Extend Losses Another 7%

Ripple started its multi-month downtrend in July 2023 after peaking at $0.9380. The altcoin is likely to extend losses by 7% and sweep liquidity to $0.5026, a key support level for XRP. This level coincides with the low of September 6.

The red histogram bars on the MACD (Moving Average Convergence Divergence) indicator signal an underlying negative momentum in the XRP price.

XRP/USDT Daily Chart

If there is a daily candle close above the 200-day EMA at $0.5548, it could invalidate the bearish thesis. XRP could then attempt a recovery to $0.6000, the October 2 high and a psychologically important price level for the altcoin.