Crypto News

XRP Price Surge: Is a $6 Breakthrough Imminent with ETF Momentum and Market Predictions?

February 21, 2025
Smart Money

XRP Price Rallies Following SEC ETF Acknowledgments Amid Bullish Sentiment

The price of XRP has surged more than 15% since closing at $2.32 on February 6, following a significant drawdown in the broader cryptocurrency market. While many altcoins have struggled to recover, XRP’s performance over the past week has garnered attention for its positive outlook.

Positive Market Sentiment

Market participants, including notable crypto analyst DonAlt, have expressed bullish sentiments regarding XRP. In a recent tweet, DonAlt mentioned that he initially anticipated a more extended price range between $2.00 and $2.60. However, he noted that XRP has surpassed these expectations with its current performance: “Excellent chart,” he remarked while sharing his perspective.

SEC’s ETF Filings Spark Optimism

A considerable factor contributing to the recent bullish activity around XRP is the acknowledgment from the U.S. Securities and Exchange Commission (SEC) regarding new exchange-traded fund (ETF) filings. The SEC has recognized a spot ETF application from CoinShares via Nasdaq. Notably, this marks the fourth spot XRP ETF filing to receive initial approval by the SEC, following previous nods to Grayscale, 21Shares, and Bitwise. Additionally, the regulator has recognized filings on behalf of WisdomTree and Canary Capital.

In Brazil, the Comissão de Valores Mobiliários, the nation’s securities commission, has approved its first spot XRP ETF presented by the Hashdex Nasdaq XRP Index Fund. Although the ETF has been approved, it is not yet available for trading, with Hashdex indicating that more details will follow soon.

Futures Traders Remain Cautious

Despite the positive news surrounding XRP, futures traders have not yet returned in significant numbers. Reports indicate that XRP’s open interest (OI) in futures trading fell by over 78% earlier this month, coinciding with a 26% price drop experienced in the first week of February.

Following the recent price recovery, XRP’s futures OI has increased by only $600 million, a modest rebound compared to the nearly $4 billion in notional value that was lost prior. This low volume of futures trading suggests that current price movements could be vulnerable to manipulation and volatility.

Analyst Predictions on XRP’s Potential

Market analysts are closely monitoring XRP’s recovering status compared to other major altcoins. An anonymous commentator known as Polly has suggested that XRP could be primed for a remarkable increase, potentially reaching as high as $6 within the next ten days, contingent on a favorable resolution to the ongoing SEC lawsuit against Ripple. Polly’s optimistic forecast hinges on the assumption that a resolution could be reached before the end of February.

However, this prediction is met with caution from market analyst Dom, who emphasized that XRP’s trading must first breach the resistance range between $2.50 and $2.80. Dom noted that the all-time high volume weighted average price (VWAP) continues to present overhead resistance, currently situated just above $2.80. For XRP to target a new all-time high or retest its previous peak of $3.40, it must break through this critical resistance level.

Conclusion

As XRP navigates these turbulent waters, the combination of recent SEC endorsements on ETFs and positive market sentiment has sparked renewed optimism among traders. However, the cautious stance of futures traders and the need to overcome significant resistance points highlights the ongoing volatility in the crypto space. Investors are advised to conduct thorough research and exercise caution given the inherent risks associated with cryptocurrency investments.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.