What to Know:
- XRP has experienced a recent pullback, dropping to around $2.40, but key support levels remain intact.
- Short-term charts indicate potential for further weakness, with a possible retest of $2.25.
- Optimism surrounding a potential XRP ETF persists, buoyed by Ripple’s legal progress and broader market sentiment.
XRP has seen a recent dip, currently trading around $2.40, as analysts monitor a Wave 5 correction that could potentially reach the $2.00 mark. Despite this short-term pressure, hopes for a spot XRP ETF and the cryptocurrency’s long-term structure continue to support a bullish outlook for investors. This analysis examines the factors influencing XRP’s price action and what to expect moving forward.
Analyst ChartNerd points to the current decline as part of a larger corrective phase that began after XRP hit $2.70. Despite the potential for a further drop to around $2.00, the analyst emphasizes that the broader macro structure remains intact, suggesting underlying strength. The cryptocurrency continues to trade within a rising channel, with support levels from previous cycles still holding.
Short-term analysis from Ali Martinez indicates potential weakness, with XRP facing rejection near $2.57 and subsequently falling below $2.45.
$XRP showing signs of weakness. A retest of $2.25 might be next! pic.twitter.com/RMYX15hbRt
Martinez’s chart suggests a possible move toward lower support zones, potentially reaching $2.25 before any recovery.
The anticipation surrounding a potential spot XRP ETF continues to fuel market sentiment, with prediction markets indicating high expectations for approval. Ripple’s favorable legal outcome earlier this year removed a significant regulatory hurdle, paving the way for a possible ETF. Market participants are closely monitoring both the ETF timeline and key support zones to gauge XRP’s next move.
In conclusion, while XRP is experiencing short-term downward pressure, its long-term structure and the potential for a spot ETF provide reasons for optimism. Investors and traders should closely monitor key support levels and regulatory developments to make informed decisions.
Source: Original article
