Online activity around XRP has recently taken a cautious note, as US XRP exchange-traded funds (ETFs) recorded their first weekly withdrawal in three months. This decline marks the end of a 13-week streak of inflows, according to SoSoValue.
This reversal, although modest, is added to a significant decline in online activity around the currency. The data show that investors withdrew approximately $576 million from four major categories of cryptocurrency ETFs, including XRP. XRP ETFs recorded withdrawals of $1.84 million during the week ending October 16, marking the end of a 13-week streak of inflows.
This decline in online activity around XRP sends mixed signals to investors. On the one hand, the fact that XRP ETFs recorded withdrawals for the first time in three months may indicate some caution around the currency. On the other hand, the data suggest that XRP is flashing a potential long-term signal, as holders of the currency are selling at prices lower than their cost basis.
However, it is worth noting that the situation is complex and there are still uncertainties surrounding XRP. The data show that over 40% of major altcoins are near their annual margin of safety levels, which may indicate a risk of correction. Additionally, cryptocurrency exchanges have a stock of $15.7 billion, which could pose an obstacle to the currency's recovery.
In conclusion, online activity around XRP has recently taken a cautious note, as US XRP exchange-traded funds (ETFs) recorded their first weekly withdrawal in three months. However, the data suggest that XRP is flashing a potential long-term signal, but caution is warranted due to the uncertainties surrounding the currency.