XRP is gaining bullish momentum, with analysts highlighting several factors that could drive its price to $6. A major catalyst is the SEC’s acknowledgment of multiple spot XRP ETF filings. Moreover, Brazil’s approval of its first XRP ETF further supports the growing adoption of XRP.
Despite this optimism, some analysts warn that futures market activity and key resistance levels could challenge XRP’s upward trajectory. Cheeky Crypto noted that ETF approvals from firms like CoinShares, Grayscale, 21Shares, and Bitwise could expand market participation, as ETFs offer investors exposure to XRP without requiring direct ownership.
Historically, regulatory approvals have driven strong price movements. Analysts believe a spot XRP ETF could generate significant market activity. Cheeky Crypto emphasized that this acknowledgment is more than a routine check, describing it as a potential catalyst for a bullish shift in sentiment.
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XRP Price Surge and Market Trends
XRP has increased by more than 15% since February 6. At press time, however, XRP has plummeted over the past day and week to $2.60 according to CoinGecko. As seen by the introduction of Bitcoin ETFs, regulatory events frequently spark bullish momentum. Although there is still some market uncertainty, institutional investors may spur additional gains.
Prior regulatory clearances have resulted in market spikes, according to a crypto analyst. Even though XRP is becoming more popular, breaching important resistance levels is still necessary for long-term growth.
Brazil’s Securities Commission has approved the first XRP spot ETF under the Hashdex NASDAQ XRP Index Fund. This move signals growing global acceptance of XRP as a legitimate financial asset. While the fund is not yet tradable, approval reflects increasing confidence in crypto investments.
The decision aligns with a broader trend of regulatory acceptance worldwide. Cheeky Crypto noted that this dual momentum from different regulatory bodies strengthens XRP’s position. As more countries explore similar approvals, XRP could see increased institutional interest beyond the U.S.
XRP Futures and Market Risks
Despite the recent rally, XRP’s futures open interest (OI) remains low. Cheeky Crypto pointed out that open interest dropped by $4 billion but recovered only $600 million. This suggests weak conviction behind the price increase, raising concerns about market stability.
Low trading volumes make XRP vulnerable to volatility and manipulation. Cheeky Crypto warns that a rally driven by weak participation could lead to sharp corrections. Without a surge in open interest, sustained upward momentum may be difficult to achieve.
Read also: How Much Will 10,000 PI Coins Be Worth At the Peak of the Bull Run?
Could XRP Reach $6?
According to Cheeky Crypto, cnalyst Polly predicts XRP could hit $6 within 10 days of the SEC lawsuit’s resolution. The term “God Candle” refers to a massive bullish candlestick, indicating a rapid price surge. However, another analyst, Dom, remains cautious, stating XRP must first break $2.50 to $2.80 resistance before aiming higher.
The ongoing SEC vs. Ripple lawsuit remains a pivotal factor. Cheeky Crypto suggests that a favorable resolution could trigger a price breakout. But there is still a lot of conjecture in the absence of formal confirmation. Market observers stress that excessive volatility may result in erratic price fluctuations.
Regulatory changes and growing institutional interest have supported XRP’s recent rise. Growing trust in the asset is demonstrated by the SEC’s recognition of ETF registrations and Brazil’s approval of an XRP fund. However, weak futures market participation and resistance levels pose challenges. While the $6 target remains speculative, a lawsuit resolution could serve as a key trigger for further price action.
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