Risk of XRP Price Dropping to $2 as Capital Inflows End

The cryptocurrency market has shown significant price volatility over the past week, leading to top altcoins recording notable fluctuations in their respective portfolios. However, the price of XRP continues to show a neutral trend during this period, raising concerns about the future price prospects of this altcoin. Furthermore, marketers are flooding the internet with questions like "Will XRP increase in price?" and "When will the altcoin season start?" In this article, we will explore market sentiment and analyze what Ripple's price might be this week. XRP Faces Capital Withdrawal Despite Inflows into Other Digital Assets The 80-week inflow streak of XRP just ended last week. According to data from CoinShares, XRP saw an outflow of $37.2 million in the past week. On the other hand, other cryptocurrency investment products experienced inflows, posing a threat to XRP's dominance in the market. Digital Asset Investment products have seen an inflow of $3.3 billion in the past week. With this, it has experienced positive inflows for 6 consecutive weeks, with a total inflow of $10.5 billion. Furthermore, the year-to-date inflow is now at a new high of $10.8 billion.

Additionally, the total assets under management (AUM) have now peaked at an all-time high of (ATH) of $187.5 billion last week. Furthermore, the United States (USA) dominates the market with weekly inflows of $3.2 billion. Following that, Germany, Australia, and Hong Kong ranked in descending order with inflows of 41.5 million dollars, 10.9 million dollars, and 33.3 million dollars, respectively. On the other hand, Swiss investors took the recent price movements as an opportunity to realize profits, leading to an outflow of 16.6 million dollars. Price Prediction for XRP This Week The price of XRP today has recorded an increase of 2.25% with a trading volume of 2.01 billion dollars, up +10.85% during this period. Although it has recorded a neutral profit over the past seven days, this altcoin has risen more than 6% in 30 days, indicating a long-term bullish trend. With a market capitalization of 137.03 billion dollars, the market capitalization is 3.968%.

The Moving Average Convergence Divergence ( MACD ) shows a continuous red chart in the daily timeframe with the 12 and 26-day moving averages witnessing negative action. This implies negative price action for the second largest altcoin this week. On the other hand, the 50-day EMA acts as strong support for the price of XRP in the 1-day timeframe. Furthermore, the 200-day EMA records a key support level around the 2 dollar mark. This indicates a high potential for a bullish reversal in the near future. Will XRP Ever Rise Again? Maintaining value on the support trendline could set the stage for Ripple's price to retest the resistance level of 2.50 dollars. Furthermore, if bullish sentiment strengthens, this could cause this altcoin to break out of the triangle pattern and head towards a higher price target of 3 dollars this month. Conversely, if the bears surpass the bulls, this could cause the price of the cryptocurrency XRP to test the immediate support level of $2.25. Additionally, if the bulls are unable to regain momentum at that time, the price of the XRP token could drop to a lower support level of $2 in the coming days.