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XRP Price Struggles Amid Market Downtrend but ETF Prospects Offer Hope

XRP Price Struggles Amid Market Downtrend but ETF Prospects Offer Hope

The price of XRP has drawn attention amid recent market fluctuations, raising questions about its long-term trajectory. As of press time, XRP trades at $2.41, marking a 1.73% decline in the last 24 hours and a sharp 21.69% drop over the past week. 

With a circulating supply of 58 billion XRP, the market cap stands at approximately $139.24 billion. Amid these movements, analyst EGRAG CRYPTO has weighed in on whether XRP is forming another range or establishing a solid foundation for future gains.

According to Coinglass data, the derivatives market reflects increasing activity, with trading volume surging by 16.63% to $10.48 billion. However, open interest has declined by 2.55% to $3.60 billion, indicating lower participation in outstanding contracts. Meanwhile, options volume has dropped 8.97% to $1.72K, and options open interest plummeted 90.30% to just $166.16K.

XRP/USD daily price chart, Source: Trading view

Technical indicators provide mixed signals. The Relative Strength Index (RSI) stands at 38.01, suggesting that XRP is approaching oversold levels. If buying pressure increases, a rebound could occur. Additionally, the MACD line remains below the signal line, yet the histogram reveals a decrease in bearish momentum, indicating a possible reversal.

Cboe’s XRP ETF Filings and Institutional Interest

A major development in the cryptocurrency market involves the Cboe BZX Exchange filing applications with the SEC for spot XRP ETFs. On February 6, Cboe submitted 19b-4 forms for asset managers including Canary Capital, WisdomTree, 21Shares, and Bitwise. These filings are crucial as they inform regulators of proposed market rule changes. If approved, these would be the first XRP ETFs in the U.S.

Previously, the SEC under Gary Gensler approved Bitcoin and Ethereum ETFs in 2024. However, with acting chair Mark Uyeda leading the SEC, analysts anticipate more crypto ETFs could gain approval. A potential shift in regulatory attitudes under a Trump-influenced SEC has further encouraged issuers to test the waters.

Potential Impact of XRP ETFs on the Market

This is not Cboe’s first attempt at launching cryptocurrency ETFs. The exchange recently resubmitted filings for Solana ETFs in late January, suggesting an increased likelihood of broader crypto ETF approvals. Besides Cboe, firms like Bitwise and Canary Capital have also initiated their own XRP ETF applications.

According to JPMorgan, spot XRP ETFs could attract between $4 billion and $8 billion in their first year. This growing institutional interest highlights the increasing acceptance of cryptocurrencies in traditional finance. Moreover, XRP is nearing its 2018 all-time high of $3.40, reinforcing its potential for further growth.

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