Following a recent downturn in the cryptocurrency market, XRP’s price has surged more than 15% since closing at $2.32 on February 6. While most altcoins have struggled to recover, XRP’s weekly performance has drawn praise due to its bullish outlook.
Growing Interest in XRP ETFs
One of the key drivers behind XRP’s recent positive momentum appears to be growing regulatory acceptance of XRP-based exchange-traded funds (ETFs). The U.S. Securities and Exchange Commission (SEC) has confirmed that CoinShares, through Nasdaq, submitted another spot XRP ETF filing. This marks the fourth such filing to receive preliminary approval from the SEC, following applications from Grayscale, 21Shares, and Bitwise.
According to industry reports, the regulatory body has also acknowledged ETF filings on behalf of WisdomTree and Canary Capital. These developments signal increasing institutional interest in XRP as a viable asset for regulated financial products.
In parallel, Brazil’s securities regulator, Comissão de Valores Mobiliários (CVM), approved the country’s first spot XRP ETF, launched by the Hashdex Nasdaq XRP Index Fund. Although the ETF has not yet begun trading, Hashdex has indicated that further details will be announced soon.
Market Activity and Investor Sentiment
Despite these positive catalysts, XRP futures traders have been slow to return to the market. Earlier this month, reports indicated that XRP’s open interest (OI) declined by more than 78% in the wake of a 26% price drop during the first week of February.
Although the price has rebounded by nearly 20% since the slump, XRP futures open interest has increased by only $600 million after a nearly $4 billion drop in nominal value. This suggests that relatively low trading volume or cautious market participation is influencing current price movements, which could make the asset susceptible to manipulation and short-term volatility.
For those looking to monitor these developments more closely, you can track real-time market data here.
Analyst Predictions and Price Targets
As XRP continues to outpace other major altcoins in its recovery, some market analysts are turning bullish. Anonymous cryptocurrency commentator Polly suggested that market makers may be preparing XRP for a run toward all-time highs.
The analyst pointed to the possibility that the ongoing SEC vs. Ripple lawsuit could conclude before the end of February. Such a resolution might act as a bullish catalyst, potentially propelling XRP to as high as $6 within a short timeframe. It should be noted, however, that this prediction remains speculative, as neither the SEC nor Ripple has officially confirmed any imminent settlement.
While Polly’s forecast may seem optimistic, other analysts are also monitoring key resistance levels. Market analyst Dom highlighted that the $2.50 to $2.80 range remains a critical barrier for XRP. Dom explained that the token’s historical volume-weighted average price (VWAP) continues to serve as strong resistance, currently positioned just above $2.80.
A breakout above $2.80, accompanied by increasing trading volume, could signal the next leg upward. If XRP manages to sustain momentum above this level, it may soon challenge its current all-time high near $3.40 or possibly extend gains further.
Frequently Asked Questions
What is a spot XRP ETF?
A spot XRP ETF is an exchange-traded fund that holds actual XRP tokens, allowing investors to gain exposure to the asset’s price movements without directly purchasing or storing the cryptocurrency.
How could ETF approvals affect XRP’s price?
ETF approvals typically increase institutional and retail accessibility, which can drive demand and potentially lead to price appreciation over the medium to long term.
Why is the SEC vs. Ripple case important?
The outcome of the legal case could provide regulatory clarity for XRP, reducing uncertainty and possibly encouraging broader adoption and investment.
What are key resistance levels for XRP?
Currently, analysts are watching the $2.50–$2.80 range. A sustained break above this zone could open the path toward all-time highs.
Is now a good time to invest in XRP?
Market conditions are volatile, and while recent developments are positive, investors should conduct their own research and consider their risk tolerance.
Where can I learn more about trading XRP?
For educational resources and advanced trading tools, you can explore additional strategies here.