Here’s Why XRP Price Could Hit $6 Soon

XRP is gaining bullish momentum, with analysts highlighting several factors that could drive its price to $6. A major catalyst is the SEC's acknowledgment

XRP price has surged by over 15% since February 6, but is this enough to propel the asset towards the highly anticipated $6 price target? Several key factors are coming into play as XRP rallies, including the SEC's acknowledgment of multiple spot XRP ETF filings and Brazil's approval of the first XRP ETF. Despite this optimism, some analysts warn that futures market activity and key resistance levels could challenge XRP's upward trajectory.

Cheeky Crypto noted that ETF approvals from firms like CoinShares, Grayscale, 21Shares, and Bitwise could expand market participation, as ETFs offer investors exposure to XRP without requiring direct ownership. Historically, regulatory approvals have driven strong price movements, and analysts now anticipate a similar response to spot XRP ETFs. Cheeky Crypto also highlighted this acknowledgment as more than a routine check, further bolstering its potential to spark a bullish shift in sentiment.

As XRP continues its rally, several interesting market trends are emerging. According to CoinGecko, XRP has indeed seen a 15% surge since February 6, adding to the bullish momentum. However, at press time, XRP has also faced some decline over the past day and week, currently trading at $2.60.

Interestingly, a crypto analyst pointed out that prior regulatory clearances have led to market spikes, even though XRP is rallying slowly. As the asset gains more traction, breaching important resistance levels will be crucial for long-term growth.

In other news, Brazil's Securities Commission has approved the first XRP spot ETF under the Hashdex NASDAQ XRP Index Fund. This move signals growing global acceptance of XRP as a legitimate financial asset, as the fund tracks the performance of XRP on the NASDAQ exchange. While the fund is not yet tradable, its approval reflects increasing confidence in crypto investments.

This decision aligns with a broader trend of regulatory acceptance worldwide. Cheeky Crypto noted that this dual momentum from different regulatory bodies strengthens XRP's position. As more countries explore similar approvals, XRP could see increased institutional interest beyond the U.S.

Despite the recent rally, XRP's futures open interest (OI) remains low. Cheeky Crypto observed that open interest dropped by $4 billion but recovered only $600 million, raising concerns about the weak conviction behind the price increase. Additionally, low trading volumes make XRP vulnerable to volatility and manipulation.

Cheeky Crypto expresses further caution, highlighting that a rally driven by weak participation could lead to sharp corrections. Without a surge in open interest, sustained upward momentum may be difficult to achieve.

As XRP price movements and market trends continue to unfold, some analysts are making bold predictions. According to Cheeky Crypto, analyst Polly predicts that XRP could hit $6 within 10 days of the SEC lawsuit's resolution. The term "God Candle" is used to describe a massive bullish candlestick, indicating a rapid price surge. However, another analyst, Dom, remains cautious, stating that XRP must first break $2.50 to $2.80 resistance before aiming higher.

The ongoing SEC vs. Ripple lawsuit remains a pivotal factor in XRP's price trajectory. Cheeky Crypto suggests that a favorable resolution could trigger a price breakout. But there is still a lot of conjecture in the absence of formal confirmation. Market observers stress that excessive volatility may result in erratic price fluctuations.

As XRP rallies with growing institutional interest, the asset's performance in the futures market and the upcoming SEC lawsuit resolution will be crucial. While analysts speculate on a possible $6 price target, it remains to be seen whether XRP can sustain its momentum and reach new heights.