XRP‘s value stumbled by about 4% within the last day, dropping to a range of $3.14 to $3.15 from the previous week’s high of $3.50. A significant factor unsettling the market is BlackRock’s announcement that there are no imminent plans for launching a spot Exchange-Traded Fund (ETF) for XRP, causing skepticism about the strategy of “buying the dip” among investors.
Why Is XRP Price Falling?
CrediBULL Crypto, a well-known analyst, has observed a weekly downturn of approximately 10%, leading back to a primary long position he had earlier identified. This presents a favorable opportunity for entry, in his opinion. He contends that should XRP maintain its current support zone, a rally could extend to the upper end of its range or potentially to a novel high. Despite potential short-term fluctuations, CrediBULL Crypto sees this area as advantageous for buying.
Additionally, Ali Martinez has emphasized critical levels that XRP must surpass to attain higher prices. Martinez posits that moving past the $3.27 threshold might open up a path to target $3.60. Furthermore, he recalls that breaking a multi-triangle setup in November 2024 could set the stage for a medium-to-long-term ascent to $12.60.
On the blockchain front, interest from significant investors, or ‘whales,’ continues to persist, evidenced by their accumulation of 900 million XRP in the short term. This pattern indicates that despite the existing selling pressure, demand has not completely waned.
Can an XRP ETF Materialize?
The prospect of an XRP spot ETF gained traction after the SEC officially dismissed its lawsuit against Ripple recently; however, BlackRock’s announcement of no plans for an XRP ETF poured cold water on such hopes. Market prediction site Polymarket shows approval chances have varied from 75% to 90% last week, now resting at 81%, indicating prevailing skepticism despite still significant optimism.
“The yield structure and community backing could help an XRP ETF outperform others,” commented Steven McClurg, CEO of Canary Capital.
McClurg holds that an XRP ETF could outshine its Ethereum equivalents due to its inherent yield dynamics and market stance, while Ethereum’s staking qualities might impede its ETF achievement. Currently, the fate of XRP seems tied to ETF-related news and technical indicators in the immediate future.
– BlackRock’s decision impacts market sentiment.
– Analysts see entry opportunities in XRP’s lower range.
– Technical breakthroughs key to XRP’s potential gains.
– Whale activity shows continued interest amidst selling pressure.
– Market forecasters suggest a moderate chance of ETF approval.
While the XRP market faces volatility and uncertainty with the absence of an expected ETF, the continuation of strategic buying and institutional interest underscores its potential for recovery and growth in the broader cryptocurrency landscape.
