1. Widespread profit-taking by investors
- XRP investors are making huge profits, with daily gains exceeding $68 million.
- Over 70% of the realized market value came from new investors since late 2024.
- This focus on new investors makes the market susceptible to sharp volatility if selling pressure continues⁽¹⁾.
2. Launch of specific funds for $ETH $XRP
- Purpose Investments and 3iQ launched ETF funds for XRP in Canada.
- Purpose Company announced a waiver of management fees until 2026, which may attract more institutional investors⁽¹⁾.
- This move enhances the legitimacy of XRP as an investment asset and increases institutional demand for it.
3. Technical Analysis: XRP is at a critical stage
- The price has been consolidating for over 200 days between $1.90 and $2.90.
- Analysts expect either a bullish breakout towards $3.70 - $10, or a drop to $1.33 if the support fails⁽¹⁾.
- The "inverted cup and handle" pattern may indicate a potential bearish scenario.
4. Strong selling pressure
- The price dropped by 4.5% in the last 24 hours, reflecting seller dominance.
- The current resistance at $2.20 is considered critical, and breaking it down may lead to further declines⁽¹⁾.
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📌 What to watch for?
- ETF performance: If strong inflows are seen, it may support the price.
- Behavior of new investors: Continued profit-taking may pressure the price.
- Technical analysis: Any clear breakout of the current price range will be a strong signal for the upcoming trend.
