Talk of a new altcoin cycle has started to come up again.
Judging by how this week has gone, this narrative is starting to gain traction. While Bitcoin (BTC) gained more than 5% in the weekly time frame, Ethereum (ETH) attracted 2x more capital inflows, increasing the ETH/BTC ratio by approximately 7%. More importantly, this marks the rate’s strongest weekly gain since August 2025, reinforcing the idea that “altcoin-led” momentum is starting to build in the market.
Ripple is not left behind. As the chart below shows, the token is up almost 9% this week, reaching a high of $1.18; it’s a level he hasn’t regained since losing it in mid-June. This move indicates strong buying interest as capital continues to move into high-beta altcoins.
Supporting this, the XRP/USDT rate has also increased by more than 3% this week.
Against this background, leaning for a long time XRP This is not an extension. In fact, one analyst recently flagged a whale with a $16 million XRP open with an average entry of $1.10. At the time of this writing, the position already stood at approximately $477,000 in unrealized profit.
This doesn’t look like a random high-leverage bet as altcoin momentum continues to grow. Rather, it signals a growing belief that XRP can rise further as capital continues to return to altcoins. This naturally raises the question: is XRP’s current structure quietly turning into a textbook bear trap?
XRP’s leverage increase puts the $1 level under scrutiny
Long positioning in XRP is starting to go parabolic.
Normally, when leverage gets this crowded on the long side, risk Increased volatility event. Even a modest shift in sentiment could trigger a prolonged wave of liquidations, especially during a period when XRP is still trading around the $1 supply zone. In this scenario, the ongoing altcoin rally alone may not be enough to keep the uptrend intact.
Therefore, as liquidity continues to accumulate around $1, the possibility of a short-term pullback is gaining momentum. But institutional positioning paints a different picture and suggests that XRP’s latest move isn’t just about fueling the broader market’s altcoin momentum.
As the chart above shows, it was another strong week for spot XRP ETFs.
According to SoSoValue, US spot Ripple ETFs recorded inflows of $17.19 million during the period. This was despite two days of net outflows during the week, suggesting demand remains resilient. Importantly, ETFs have recorded net inflows for nine consecutive weeks, indicating “sustained” institutional interest.
Against this, Ethereum ETFs have recorded consecutive net outflows over the same period. This difference can distinguish XRP from other altcoins. In simple terms, although ETH is leading short-term gains, it still appears to be driven by capital rotation.
XRP, on the other hand, is showing stronger long-term momentum, making its consolidation around $1 look more like a potential bear trap, with long positioning increasing bullish pressure.
Final Summary
- Altcoins are gaining momentum; ETH and XRP are seeing strong weekly inflows and price increases.
- Despite long leverage near $1, steady XRP ETF inflows suggest demand is still strong and a bear trap is possible.
