Here’s Why XRP ETF Rollouts Signal Interesting Week Ahead

Brazil just beat the U.S at launching the first XRP ETF and more could be on the way soon. But just how much could this development impact XRP price action in the next 7 days?

Analysts and the market at large have been waiting for an XRP ETF especially after the end of Ripple’s legal woes with the SEC. Well, the first spot XRP ETF has finally been launched in Brazil contrary to expectations that it would be rolled out in the U.S Especially with the latter’s aggressive push to be the leading market for crypto adoption.

Preliminary information revealed that the new XRP ETF would be launched with the ticker XRPH11 and will be available on the B3 stock exchange in Brazil.

This was an exciting move for XRP because it marked the start of more such announcements to come. In fact, the next XRP ETF launch could be days away. This is because Proshares Trust is reportedly slated to launch an XRP ETF on 30 April.

Will the XRP ETF News Trigger a Demand Wave?

Excitement around Bitcoin and Ethereum ETFs historically demonstrated some positive impact on their price action. Especially the days before the ETFs were launched. However, that does not appear to be the case with XRP.

XRP price action last week was limited and it managed to conclude the week with a 5.58% upside. A significantly lower performance compared to most of the coins in the top 10 list.

Nevertheless, XRP did manage to hold on to a 34.78% premium from its lowest price point in April, at its $2.19 press time price tag.

But despite its recovery in the last 2 weeks, it still had significant room for extended upside before entering overbought territory. Its MFI indicator revealed that there were significant outflows in the last 7 days which would explain XRP’s struggle to maintain bullish momentum.

Nevertheless, the news about the newly launched XRP ETF and the upcoming one could potentially fuel positive sentiment around the cryptocurrency. Such an outcome may lead to a bullish outcome in the as May rolls in. This is based on the assumption that the market sentiment continues to lean on the side of greed.

Evaluating the state of XRP confidence in the market

On-chain data revealed that XRP sell pressure has been cooling off since Wednesday. This outcome was clear in the cryptocurrency’s spot flows which were mostly negative this month. For context, spot netflows peaked at -$75.37 million on Wednesday and had cooled to -$11.42 million in the last 24 hours.

It is worth noting that spot flows were not yet positive at the time of observation. Nevertheless, the declining sell pressure was also observed in the derivatives segment.

Derivatives volumes dipped by 24.87% to $4.33 billion in the last 24 hours. Open interest cooled down by 0.46% to $3.89 billion. On-chain data also revealed that there was a dip in the amount of sell pressure from whales.

XRP Whale Activity

Whale to exchange transactions have been declining since Wednesday. This confirmed that whales were selling fewer XRP coins and hence profit-taking was on its way down.

Although the whale activity signaled declining sell pressure from the whale cohort, exchange reserves still pushed higher. This suggests that other categories of XRP holders were still contributing to sell pressure.

Exchange outflows were still notably higher than exchange inflows in the last 24 hours. A sign that the news of the latest XRP ETF launch did not have a significant impact on price.

A potential reason for this could be the fact that Brazil is smaller by multiple orders of magnitude in terms of liquidity potential compared to the U.S. In other words, the launch of a U.S-based XRP ETF will have a much more pronounced impact on price.