XRP at Critical Crossroads: $1.30 Target Looms as Traders Flee Positions
The fourth-largest cryptocurrency has witnessed bearish on-chain metrics since XRP has slipped to a 3-month low after dropping below the psychological price of $2.
For instance, according to Coinglass data, XRPs open interest has declined by 3.78%, signaling that the altcoins market activity is decreasing as traders exit their positions.
As a result, renowned market analyst, Ali Martinez, believes that XRPs situation might be like getting out of the frying pan and into the fire after falling below a head-and-shoulders pattern.
Martinez pointed out, XRP is breaking out of a head-and-shoulders pattern, setting the stage for a potential move to $1.30.
This analysis shows that XRP risks dropping to the $1.30 zone since a head-and-shoulders pattern depicts a trend reversal.
According to CoinGecko data, XRP was down by 13.4% in the past week to hit $2.13 at the time of writing.
Will an XRP ETF Save the Situation?
With asset management firm Teucrium already setting the XRP exchange-traded fund (ETF) ball rolling, Bloomberg senior analyst Eric Balchunas believes this is a welcome move despite the witnessed bear market.
Trading under the name XXRP, Teucriums XRP ETF has already generated over $5.43 million in turnover.
Balchunas stated, XXRP (2x XRP ETF) saw $5 million in volume on Day One, very respectable, especially considering the mkt conditions. That puts it in approx top 5% of new ETF launches, and about 4x what the 2x Solana ETF $SOLT did (altho both 200x less than King IBIT).
ETFs are usually deemed game-changers since they trigger heightened institutional interest in an asset, and the same is expected for XRP.
Meanwhile, XRP is eyeing a mega utility explosion, thanks to Ripples acquisition of prime brokerage firm Hidden Road for a whopping $1.25 billion.
This deal is expected to expand Ripples cross-border payment sphere, with XRP expected to take center stage.
Read more: https://zycrypto.com/xrp-at-critical-crossroads-1-30-target-looms-as-traders-flee-positions/
Text source: ZyCrypto
