XRP Price Action Stalls Amid Growing Interest in a Potential ETF

XRP's price action has remained stagnant in recent days, even as positive market developments fuel investor interest.

XRP price remained largely stagnant on Thursday, despite positive market developments that continue to fuel investor interest in the token. The lack of upward momentum has created uncertainty, with many traders adopting a cautious stance and opting for smaller positions. However, discussions around an XRP exchange-traded fund (ETF) are generating optimism and sparking debate over the token’s future price trajectory.

XRP experienced a 2% decline over the past 24 hours, trading at $2.43 at the time of this report. Its one-day trading volume surged by 40%, reaching $5.49 billion. The token touched a 24-hour high of $2.49 and a low of $2.32, reinforcing concerns about short-term volatility.

Market analysts are divided on whether XRP will recover soon or undergo a deeper correction. Well-known market expert EGRAG CRYPTO pointed out that past price trends suggest a significant drop before a strong rebound.

Specifically, he highlighted XRP’s 230% rally in mid-2023, which was followed by two sharp corrections of 4.65% and 59.73% that created strong buying opportunities. If history repeats itself, XRP could see a drop of 54.65% to $1.54, or even a 59.73% decline to $1.37. These levels mirror past lows of $0.54 and $0.37, but with an added $1 difference due to the asset’s current valuation.

Despite bearish indicators, some analysts remain bullish. Another crypto strategist, Dark Defender, recently pointed out a crucial Fibonacci level of $2.4467, suggesting that XRP might be on the verge of a price recovery.

Additionally, XRP’s Relative Strength Index (RSI) is currently at 39, indicating oversold conditions. This typically signals a potential price bounce, as selling pressure weakens and investors look for re-entry points. Dark Defender also highlighted $2.33 as a strong support level, suggesting that XRP could stabilize before attempting another breakout.

The XRP futures market also saw a sharp decline in open interest, dropping from $7.86 billion in mid-January to $3.5 billion. This suggests that traders are currently hesitant to take large positions, reflecting short-term bearish sentiment.

Furthermore, XRP has fallen 29% from its January high of $3.39, which is also impacting traders’ decisions. XRP is currently trading at a crucial juncture, with its next move set to determine whether it will experience a correction or a breakout.

Insiders are also keeping a close eye on developments related to an XRP ETF. The recent surge in discussions regarding a potential regulated investment vehicle for XRP has boosted bullish sentiment.

Moreover, a top legal expert suggested that XRP could be added to the U.S. Strategic Reserve once it reaches $5, further fueling speculation about its long-term potential in the market.

While some analysts are warning of a possible dip to $1.4 in the coming days, others believe this could be a prime buying opportunity. As institutional interest in XRP continues to grow, the token’s next major move is expected to reshape market dynamics and pave the way for a potential surge.