After an impressive rally that saw its price soar by nearly 400%, XRP is now facing a market correction. The crypto asset price has dipped to less than $2.20, but new developments, including potential XRP spot ETFs, hint at promising opportunities for investors looking beyond the volatility.
Cooling Phase
From the daily price chart, XRP has dropped from a high of $2.45 to trade at $2.16 at the time of publication. This represents an 11% price correction. The token could face sharper declines if it falls to around $1.6 support. Ranked 4th with a market capitalization of $123 billion, XRP has also dropped 12% in the past week.
Ripple’s ongoing legal battle with the SEC could soon reach a turning point. A series of court rulings, including a $125 million penalty instead of the $2 billion fine sought by the SEC, have tilted the scales in Ripple’s favor.
If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn’t protected investors and instead has damaged the credibility and reputation of the SEC.Somehow, they still haven't gotten the message: they lost on everything that… https://t.co/1hW7xVSL9b
— Brad Garlinghouse (@bgarlinghouse) October 2, 2024
Former CFTC Chair Chris Giancarlo recently expressed optimism, predicting the lawsuit could be dropped under the incoming Trump administration, which may take a more crypto-friendly approach.
Long-Term Outlook
Besides these legal and market dynamics, Ripple’s XRP is at the forefront of ETF speculation. WisdomTree, Bitwise, and Canary Capital have filed proposals for XRP spot ETFs, which could further legitimize the asset alongside Bitcoin and Ethereum. With the Bank of New York Mellon poised to manage the trust, industry watchers speculate that an ETF approval could catalyze a new price surge.
For investors, XRP’s current correction may present attractive entry points if key support levels hold. A breakout above $2.1 would signal recovery, but the coming days remain critical. Market trends and regulatory decisions will likely determine whether XRP stabilizes or face further price declines.
Over the years, Ripple has positioned XRP as a cryptocurrency for financial institutions. For instance, the XRP Ledger (XRPL) facilitates faster and more affordable cross-border payments. Banks and payment providers have adopted the payment platform.
If the XRP ETF is approved, institutions will invest more in XRP. Big financial firms are already preparing for this, showing strong interest in XRP. Currently, the technical indicators do not show any potential change of trend and the price could fall further.
According to the data from TradingView, XRP is trading above the 50 and 200 moving averages. The Relative Strength Index, a momentum indicator that measures the magnitude of recent price changes, is currently at 60 and heading downwards. This means that the cryptocurrency requires more buyers to reverse the downward trend.
This article was written by Jared Kirui at www.financemagnates.com.
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