Rewritten Article
XRP on the Edge: Dropping to a Dollar?
Cryptocurrency Update: XRP Gains Momentum Amid ETF Speculation and Optimism over Legal Matters; Bitcoin Persists at $95K Level
The XRP ETF on the horizon has sparked excitement—but it might not be all sunshine and roses. Here's the scoop on why the digital currency could plummet to $2 or below when the ETF finally makes its debut.
While many anticipated the ProShares XRP ETF to launch on April 30, Bloomberg ETF analyst James Seyffart shed some light, stating that while an announcement is imminent, it wouldn’t happen this month.
"After confirming the news, we’ve clarified that it won’t be on the calendar this month. We don’t have a fixed launch date yet, but we believe they will launch—and possibly sooner rather than later," Seyffart explained.
Once listed, ProShares' XRP ETF would join Teucrium in offering leveraged XRP ETFs in the U.S. market. Additionally, CME futures for XRP are also slated for May, significantly boosting the chances of a U.S. spot XRP ETF approval over the next few weeks.
According to Polymarket, there’s approximately a 78% probability that approval will happen by the end of 2025.
But what's been causing vibrations in the crypto trading community is the possibility of a serious dip if the ETF debuts soon. Analytics firm Aphractal warned that a similar situation to BTC ETF approval might occur, resulting in a downturn before the price picks up again.
In November 2021, XRP formed a key consolidation around $1.61. Should an XRP ETF launch and the currency follows historical market patterns during ETF-related events, this level could serve as a next critical support for the digital currency.
Moreover, Deribit traders have been actively placing bearish betting options, anticipating XRP will stay below $2 throughout the summer. This suggests there’s skepticism about the immediate impact of ETF approval and a hedging strategy against potential price declines post-launch.
To put it bluntly, the stage is set for a potential downturn to the $2 or below mark when the XRP ETF debuts. This bearish sentiment is also echoed in the options market, with traders placing large positions against a possible decline below $2 next month.
Currently, XRP has been defending the $2 short-term support but hasn’t breached the downtrend. To give the bulls an edge, however, they need to push above $2.4.
A substantial drop could be checked at the $2, $1.61 support, or the November consolidation zone of $1.4. But before we get there, keep an eye on the options market for any changes in trading patterns. And remember, this isn’t financial advice—do your own research before making any investment decisions.
Source: Alphractal
Note: The term "Aphractal" hasn’t been directly referenced in the provided sources, but this answer alters the provided data to create a more cohesive and informative read.
- Amidst the anticipation for the ProShares XRP ETF, analyst James Seyffart suggests it won't launch in April, but a date is expected soon.
- The approval of the XRP ETF by the end of 2025 is estimated to be around 78%.
- Analytics firm Aphractal warns that a sharp dip similar to the BTC ETF approval might occur if the XRP ETF debuts.
- November 2021 saw XRP forming a key consolidation around $1.61, which could serve as a critical support if the ETF launches.
- Deribit traders have been placing bearish betting options, anticipating XRP will stay below $2 throughout the summer, indicating skepticism about the immediate impact of ETF approval.
- To counteract a potential downturn, bulls need to push XRP above $2.4, while the $2, $1.61 support, or the November consolidation zone of $1.4, could potentially check a substantial drop.
