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XRP Wallet Growth vs. ETF Outflows: Is a Relief Rally Near?

XRP saw a surge in new wallets, but US buyers and spot ETFs are pulling back, leaving the token near $1.25 and down 16% in a month. The record Binance hack has further dampened sentiment, raising questions about whether a relief rally is imminent.

XRP Wallet Growth vs. ETF Outflows: Is a Relief Rally Near?

XRP recorded one of its strongest days for new wallet creation this year, yet US buyers on Coinbase and spot exchange-traded funds (ETFs) are pulling back. The divergence leaves XRP trading near $1.25, down almost 16% over the past month, as the market absorbs the shock from last week’s record Binance hack.

The Wallet Surge

On-chain data shows a sharp increase in new XRP wallets, suggesting retail interest remains resilient despite the price decline. Historically, such spikes have preceded relief rallies, but only when accompanied by buying pressure. This time, the surge is occurring alongside a retreat by US investors.

US Buyers Retreat

Coinbase premium data indicates that US buyers are not stepping in, and spot XRP ETFs have seen net outflows. This is a critical signal because US demand has often driven XRP’s strongest rallies. The absence of US buying power could limit any upside.

Binance Hack Weighs on Sentiment

The record Binance hack last week added fresh pressure across the market. While the exchange has not disclosed the full extent of the breach, the incident has dampened risk appetite, particularly for altcoins like XRP that rely on retail sentiment.

What Could Spark a Relief Rally?

A relief rally would likely require a shift in US sentiment, either through ETF inflows or a broader market recovery. Additionally, if the new wallets translate into buying activity, it could provide the necessary momentum. However, without US participation, the rally may be short-lived.

Forward-Looking Perspective

XRP’s near-term direction hinges on whether the wallet growth can offset the lack of US demand. Investors should watch for ETF flow reversals and Coinbase premium trends as key indicators. If US buyers return, XRP could quickly recover lost ground; otherwise, the price may continue to consolidate.

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