XRP dropped after recording a new all-time high of $124,474 on Thursday.
XRP remains close to its all-time highs amidst increasing institutional interest in spot ETFs.
The bulls of XRP struggle to maintain the bullish trend despite the ongoing increase in the weighted funding rate for futures.
Bitcoin (BTC) corrected on Thursday after extending its breakout to a new all-time high of $124,474 earlier today, trading at $121,615 at the time of this report. The bullish trend has increased prices among alternative currencies, with Ethereum (ETH) nearing its all-time high above $4,800 reached in November 2021.
On the other hand, Ripple (XRP) struggles to maintain its bullish trend towards the all-time high of $3.66, suggesting a potential correction to gather liquidity towards key support at $3.00.
Market Overview: Ethereum dominates institutional capital inflows
Ethereum spot ETFs listed in the United States continue to outperform Bitcoin spot funds. According to SoSoValue data, Ethereum spot funds saw total net inflows of $729 million on Wednesday, up from $524 million recorded on Tuesday.
On Monday, inflows into Ethereum funds exceeded $1 billion for the first time, highlighting the recent interest the largest smart contract token is receiving from institutional investors.
Ethereum Spot Fund Data
As for Bitcoin spot funds, inflows have been steady but are much lower than the levels seen before prices reached the previous high of $123,218 in mid-July. SoSoValue data highlights about $87 million in net inflow on Wednesday, slightly up from Tuesday's inflow of $66 million.
Bitcoin Spot Fund Data
Meanwhile, interest in XRP remains high, given the ongoing increase in the weighted funding rate for futures, averaging 0.0189%. The chart below shows that the weighted funding rate dipped slightly into negative territory on August 1 before traders increased their exposure, benefiting from long positions in XRP.
Higher levels of funding rate indicate increased interest in the token supported by traders benefiting from short-term price increases.
Weighted funding rate for XRP
Daily Chart: Bitcoin maintains support above $120,000
Bitcoin prices extended their breakout on Thursday, recording a new all-time high before the correction due to profit-taking or liquidity gathering ahead of an attempt to make a new mark above $125,000.
The Relative Strength Index (RSI) stabilizes slightly above the midpoint on the 4-hour chart, indicating room for further growth if traders increase their exposure.
However, if the Relative Strength Index (RSI) drops below the midpoint while BTC prices pull back towards support at $120,000, which was tested as resistance on August 12, the path of least resistance may remain downward.
Daily chart for BTC/USDT pair on 4-hour timeframe
Altcoin Update: Ethereum maintains bullish trend while XRP pulls back
Ethereum is trading near its all-time high above $4,800 and a weekly high of $4,788. Bulls are largely in control, supported by the increasing RSI which remains stable in the overbought territory on the daily chart.
Daily chart for ETH/USDT pair
The ongoing increase in speculative demand, whether from institutional or individual investors, enhances the bullish outlook for Ethereum. A breakout above its all-time high could increase interest in ETH, especially with open interest in futures accelerating to $66 billion on Thursday.
Open interest in Ethereum futures
As for XRP, sellers dominate on Thursday, with the price dropping over 1% to trade around $3.23. The bearish trend of the RSI supports the short-term bearish outlook.
Daily chart for XRP/USDT pair
Key areas of interest for traders show support at $3.00, which was tested in late July, while resistances are around $3.40 that were tested on Friday and the all-time high of $3.66 reached on July 18.