XRP is currently trading in a narrow range, hinting at a period of investor consolidation that could precede a significant price shift.
Despite uncertainties surrounding the token’s future, market analysts are optimistic about a potential bullish breakout driven by advancements in the network and legal victories.
Investors are closely monitoring the price movements of XRP following a prolonged consolidation phase. Recent data indicates that Ripple (XRP) has been hovering around its 20-day average price, with neither bulls nor bears dominating the market, leaving investors unsure about the next price direction.
Speculation has arisen regarding the approval of a Bitcoin spot ETF and Ethereum spot ETF, leading some to believe that XRP could be the next in line for approval from the U.S. SEC. However, the ongoing legal battle between Ripple and the SEC has raised doubts among experts about the likelihood of institutional support for the ETF filing and SEC approval.
Despite the legal uncertainties, Ripple’s CEO has expressed confidence that an XRP ETF will be welcomed by the market by 2025, indicating optimism that the legal case will be resolved by the end of this year.
The legal battle remains a key factor contributing to XRP’s struggle to gain momentum and keep pace with other cryptocurrencies. Legal experts believe that Ripple will eventually emerge victorious in the case or reach a fair settlement, especially with the upcoming changes in leadership at the White House and the SEC.
As of the latest update, XRP is trading at $0.48 after experiencing a significant decline of 7% in the last 24 hours. The 8th-ranked coin has dropped by 8% on the weekly chart.
This price movement follows a broader market trend initiated by Bitcoin (BTC), which recently dipped below the $70,000 mark by 2.5%. The exact cause of the price drop remains unclear, with many experts advising savvy investors to capitalize on discounted prices to increase their holdings.
Technical indicators for XRP’s price direction are mixed, with the Relative Strength Index (RSI) and Money Flow Index (MFI) suggesting consolidation, while the Chaikin Money Flow (CMF) indicates a potential capital flight from XRP, potentially signaling a bearish trend.
Trading activity in XRP futures has surged this month, with open interest in futures contracts rising by 7% to $661 million, as per Coinglass data.
Whale activity in XRP has also seen a notable increase, attracting significant investor attention. On-chain data reveals that over 218 million coins were transferred within a 24-hour period, indicating strong interest from large investors and painting a positive long-term outlook for the token.