Hot Capital Spikes 134% Amid Bearish Pressure
Ripple's XRP experienced a dramatic $1.25 billion inflow of speculative capital over the past week, with Hot Capital jumping from $0.92 billion to $2.17 billion—a 134.9% increase. This surge suggests renewed short-term trading interest, potentially signaling expectations for a price rebound.
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However, current Hot Capital remains 72% below its December 2024 peak of $7.66 billion
To match late 2024's speculative frenzy, XRP would need nearly $5 billion more in capital. Historical patterns show that when Hot Capital peaked previously, XRP's price reached $3.40 by January 2024.
Price Performance Fails to Reflect Capital Growth
Despite the capital surge, XRP's price action tells a different story:
- Daily charts: -2.65%
- Weekly charts: -1.62%
The decline indicates weak genuine demand, with most buyers withdrawing from the market. Key metrics reinforce this bearish outlook:
- Negative Taker Buy-Sell Ratio (buyers retreating)
- 21.7 million XRP tokens from holders (100k–1M) dominating exchange inflows
Market Sentiment Turns Increasingly Bearish
Short sellers currently control the market:
- Negative Funding Rate (shorts dominating)
- Weighted Sentiment negative 6 of past 7 days
Source: CryptoQuant | Santiment
Key Levels to Watch
- Support: $2.16 if selling continues
- Rebound potential: $2.30 with sustained capital inflow
FAQ: XRP Market Dynamics
Q1: What does Hot Capital indicate for XRP?
A1: It measures speculative interest. The recent surge suggests traders anticipate a rebound, though price action hasn't yet followed.
Q2: Why hasn't XRP's price risen with the capital inflow?
A2: Bearish sentiment and seller dominance are outweighing the capital impact. Genuine demand remains weak.
Q3: What could trigger an XRP price recovery?
A3: A shift in market conviction with sustained capital inflow and reduced selling pressure.