XRP has been unable to break past the $2.5 resistance level for over a week, despite strong market interest. The cryptocurrency initially surged past $1 due to increasing banking adoption and positive regulatory sentiment. However, a market crash on February 3 caused XRP to plummet from $3 to $2.1, shaking investor confidence.
Since then, XRP has struggled to regain momentum. A brief relief rally on February 4 pushed the price to $2.7, but it quickly fell back to $2.2 within two days. At present, XRP is trading at $2.38, failing to make a decisive move above its key resistance.
Will ETF Approval Spark a Rally?
The biggest catalyst for a potential XRP surge is the possibility of a spot XRP exchange-traded fund (ETF). Grayscale Investments submitted a proposal to convert its XRP Trust into an ETF, and the U.S. Securities and Exchange Commission (SEC) is expected to respond by February 13.
A spot ETF would allow institutional investors to gain exposure to XRP without directly holding the asset, which could significantly boost demand. Given the SEC’s historical legal battles with Ripple, its decision on the ETF could indicate a major shift in regulatory stance.
Market Sentiment: Optimistic but Cautious
Crypto analysts remain divided on XRP’s future. Some predict that ETF approval could drive XRP to $10 or even $50, while others suggest that a rally to $30 is more realistic. However, bearish concerns remain.
If XRP fails to break the $2.5 resistance soon, it could face further downside pressure, potentially dropping to its $2 support level. Market trends, trading volume, and overall sentiment will play crucial roles in determining the next move.
What’s Next for XRP?
With XRP trading in a tight range, the upcoming SEC decision on February 13 will likely determine its short-term trajectory. A positive outcome could trigger a breakout past $2.5, while a rejection or delay might lead to further losses.
For now, investors are watching closely, waiting to see whether XRP can overcome its resistance and enter a new bullish phase.
