**XRP Price Action: Inflows Drop 95%, But Chaikin Data Suggests Possible Rally**
**Market Context: XRP’s Recent Price Volatility**
The XRP price has been trading in a narrow band over the past few weeks, reaching a monthly high of $3.65 earlier in July before declining by nearly 14% to its current price of around $3.09. This volatility has left investors wondering what’s next for the cryptocurrency.
**Chaikin Money Flow (CMF) Signals Tentative Bullish Inflows**
According to the Chaikin Money Flow (CMF) indicator, which measures the amount of money flowing into and out of an asset, the current reading of 0.15 suggests tentative bullish inflows. This could be a sign that investors are starting to regain confidence in XRP, potentially paving the way for a rally.
**Inflows Muted Since July 11 Spike**
However, despite the positive CMF signal, inflows into XRP exchanges have been muted since a significant spike on July 11, when 220 million XRP hit exchanges. This lack of follow-through has led to a 95% drop in inflows, leaving many to question whether the recent price decline is a correction or a sign of a larger trend reversal.
**Ascending Triangle Patterns Suggest Breakout Possible**
Technical analysis suggests that XRP is forming an ascending triangle pattern, which could be a bullish sign. If the price breaks out above the $3.24 level, it could signal a potential rally. However, a failure to break out above this level could lead to further declines.
**What’s Next for XRP?**
As the XRP price continues to trade in a narrow band, investors will be watching closely for signs of a breakout or further decline. While the CMF signal and ascending triangle pattern suggest a possible rally, the muted inflows and recent price decline are cautionary signs. Only time will tell what’s next for XRP, but one thing is certain – the cryptocurrency’s price action will be closely watched in the coming days and weeks.
