XRP’s newly launched exchange-traded funds (ETFs) surged, soaking up nearly 80 million tokens in a single day, significantly outperforming the recent performance of Solana’s ETF launch. Following this surge, total assets under management (AUM) reached $778 million according to data from XRP Insights.

Key Highlights:

• The XRP ETFs from Grayscale and Franklin Templeton garnered nearly $130 million upon their launch.
• Ongoing ETF inflows, not just initial demand, will play a crucial role in determining XRP’s pricing recovery.
• While XRP has formed a bullish flag, it remains technically bearish as it trades below critical Exponential Moving Averages (EMAs).

Escalating Market Optimism for XRP Demand

During the debut on Nov. 24, Grayscale’s GXRP drew in $67.4 million and Franklin Templeton’s XRPZ attracted $62.6 million, elevating total XRP ETF assets above $628 million that day. The rapid absorption of XRP tokens trumps the early interest from Solana’s recent ETF and coincides with Bitcoin outflows.

XRP ETF tracker. Source: XRP Insight

The active XRP ETFs now total four, with Canary’s XRPC on Nasdaq leading the pack with $331 million in cumulative net inflows, followed by Bitwise’s XRP ETF at $168 million.

The swift absorption indicates strong ETF demand, which directly influences circulating supply; however, continued inflows are essential for XRP’s long-term advantage.

XRP advocate Chad Steingraber expressed optimism, stating that “each share is 10 to 20 XRP, marking a significant increase for the share price,” noting that sustained inflows could initiate a FOMO-driven surge, allowing the ETF to emerge as a key influencer in market dynamics over time.

As speculation mounts, 21Shares’ TOXR is anticipated to launch on Nov. 29 on Cboe BZX, having gained S-1 and Form 8-A approvals. This product aims for $500,000 in seed capital with a 0.50% fee structure, broadening exposure to US spot XRP.

Related: XRP price ‘looking very bullish’ after 25% weekly gain: How high can it go?

Pivotal Breakthrough for XRP’s Bull Flag at $2.20

Currently, XRP stands out in the top-10 assets, demonstrating a 5% weekly recovery from $1.90 to $2.20, marking a resistance point.

On the four-hour trading chart, XRP is tracing a bullish flag pattern, with forecasted breakout levels nudging towards the $2.35–$2.45 sell-side fair value gap (FVG), while targeting liquidity peaks at $2.30 and $2.35.

XRP four-hour chart. Source: Cointelegraph/TradingView

Nonetheless, failing to reclaim $2.20 heightens the chances of a shift towards $2.10–$2.00 buy-side FVG, where critical liquidity resides. The present market sentiment is cautious as it deliberates the immediate directional bias.

The relative strength index (RSI) remains above 50, signifying robust short-term demand, but the overarching trend remains downward, with XRP presently traded beneath the 50, 100, and 200 EMAs on the four-hour chart.