Ripple (XRP) has rebounded after being pushed down to $1.27 in a bearish market, drawing market attention to whether a short-term price recovery is possible. The movement is interpreted as bargain-hunting buying flowing in after selling pressure intensified, but it remains uncertain whether this will lead to a trend reversal.

■ Recovery to the $1.29 Range... Leveraged Selling Cited as Background for Decline

On the 18th, Watermelano, a market analyst active in the CoinMarketCap community, analyzed that Ripple (XRP) was trading at $1.29250, up about 1.76% from the low of $1.27018 recorded on the 17th.

Watermelano pointed to selling pressure from leveraged trading as the background for the recent price decline. Notably, XRP recorded a relatively large drop among major cryptocurrencies over the past week. According to InflowScan figures he cited, XRP fell 7.2% over the week, and 88.1% of recent selling volume was related to long positions. However, the specific calculation method and aggregation scope of that ratio require further verification.

He also noted that the funding rate remained at around 0.0013% on a four-hour basis. This may suggest that trading costs in the derivatives market were not heavily skewed in one direction. However, the funding rate alone cannot determine the scale of forced liquidations or overall investor positions.

■ ETF Fund Flows Diverge... Bitcoin and Ethereum See Net Outflows, XRP Sees Net Inflows

The analysis also indicates differences in ETF fund flows. Watermelano claimed that over the same period, Bitcoin spot ETFs saw net outflows of $162.7 million and Ethereum-related ETFs saw net outflows of $242.3 million, while XRP ETFs recorded net inflows of $3.75 million. If these figures were compiled over the same period and criteria, it means fund flows diverged among major cryptocurrency investment products.

However, it is difficult to see ETF inflows as directly leading to a rise in XRP spot prices. Fund scale, actual purchase timing, and overall market trading volume must be examined together.

■ Short-Term Focus Is on $1.30... Fed Interest Rates Also a Variable

In the short term, the low formed around $1.27 may be tested again. If the rebound continues, attention may turn to whether the $1.30 level is recovered, but even breaking above that price level does not mean the downtrend has ended.

U.S. monetary policy is also a variable. The Federal Reserve's future interest rate decisions and changes in market rates could affect risk-asset investment sentiment. In particular, in the cryptocurrency market, where leveraged trading accounts for a high proportion, price volatility could expand depending on changes in interest rate expectations.

Ultimately, Ripple's (XRP) current rebound may be part of a process of short-term selling pressure easing. However, to confirm a sustained upward trend, further verification of trading volume, derivatives positions, and the continuity of ETF fund inflows is necessary.

[Cryptocurrencies are high-risk investment assets with high price volatility, and market analyses may differ from actual price movements. Community analyses and figures cited in this article may vary depending on the time of writing and aggregation criteria. This article does not recommend buying or selling any specific cryptocurrency, and investment decisions and their responsibilities rest with the investor. AI assistance was used in the writing of this article.]