XRP price dropped dramatically but regained some ground which made analysts take notice. The experts believe this price decrease marks the end of a downward trend before a significant market surge that could drive XRP to exceed $4.
Additionally, the rising number of ETF applications demonstrates the potential for substantial investment into the digital asset
XRP Price Experiences a Sharp Decline Before Partial Recovery
Notably, XRP price dropped drastically to reach $2.17 then recovered to establish price stability at $2.54. The price shift caused XRP to lose 15% of its value during 24 hours. Market volatility alongside trader selling activity during broader cryptocurrency market movements caused this depreciation.
Consequently, experts believe investors should take advantage of current market conditions caused by the price decline. The price instability follows a historical pattern where XRP tends to reverse before undergoing upward price increases. Market actors observe the asset while tracking its potential restoration toward long-term market gains.
XRP Price To $4?
More so, cryptocurrency analyst Zach Rector asserts that XRP investors need to take advantage of the current price drop since this will trigger a substantial price increase. Rector noted how XRP fell to less than $2 on three previous occasions before reaching $3.40. According to this observed pattern, he believes XRP will quickly bounce back and exceed $4 soon.
Another analyst, Steph Crypto, analyzed the XRP market decline by examining the 2017 price correction events. XRP price underwent multiple price corrections reaching up to 68% during its 2017 bull run before achieving its highest price level ever recorded.
Steph Crypto mentioned that previous market drops never stopped the uptrend of XRP and instead accelerated its growth rates. Several investors view the current market decrease as an indication that upcoming price gains are imminent.
XRP ETF Filings Gain Momentum Amid Market Speculation
Meanwhile, the XRP market has seen increased attention due to growing interest in exchange-traded fund (ETF) applications.
A total of nine applications for an XRP ETF are currently under review by the U.S. Securities and Exchange Commission (SEC). Among the firms that have filed applications are major asset managers such as Bitwise, WisdomTree, Grayscale, and CoinShares.
XRP ETF race scrutiny suggests new firms including BlackRock will pursue XRP ETF development. The current rise in ETF applications mirrors the events that occurred when Bitcoin received its ETF approval.
The approval of Bitcoin spot ETFs in January 2024 created significant positive changes in the cryptocurrency market. Supporters of XRP predict that gaining an ETF approval will trigger price growth.
Therefore, multiple experts have created projections to explain how an XRP ETF could affect markets. JPMorgan forecasts that an XRP ETF will draw $4 billion to $8 billion in new capital when approved for six months. Capital influx would generate substantial buying power leading to XRP price rally.
