What to Know:
- XRP’s price remains stable despite the anticipation of an XRP ETF listing by Canary Capital.
- Derivatives data indicates hesitation among traders, with declining volumes and increasing short positions.
- Technical analysis suggests a potential support level at $2.35, with a possible decline to $2.12 if breached.
The potential launch of an XRP ETF has generated considerable discussion, but the market response has been muted, suggesting a possible “sell the news” event. Canary Capital’s move to list an XRP-based fund has not yet translated into upward price momentum for the token, which continues to trade between $2.35 and $2.60. This range is now being viewed as both a consolidation zone and a potential bull trap by market participants.
Bloomberg’s senior ETF analyst, Eric Balchunas, confirmed Canary Management’s filing of Form 8-A, a crucial step typically preceding an ETF launch by less than 48 hours. However, derivatives data reveals a reluctance to preempt the event, with daily volume decreasing by 28.29% to $7.08 billion and open interest dropping by 2.02% to $4.07 billion. The long-to-short ratio falling below 1 indicates a rise in short bets against XRP.
The current chart structure suggests traders are testing market conviction rather than reacting impulsively to headlines. XRP’s price action shows candles stacked just above the mid-Bollinger line, with $2.35 serving as a critical, yet fragile, support level. A break below this support could lead to a further decline towards $2.12.
MACD readings offer a glimmer of optimism, indicating a slowing decline with red bars fading and lines converging. A bullish crossover in the next session could potentially shift sentiment. Currently, bears control the delta at -3.2 million, while bulls are defending their positions with shallow bids, reflecting a split market sentiment.
If the ETF listing occurs without a corresponding price breakout, the “sell the news” scenario could materialize, potentially impacting short-term price action. Investors should monitor key support and resistance levels, alongside regulatory developments, to navigate potential market volatility.
Source: Original article
