XRP Faces Continued Decline Despite Anticipated ETF Approval
As the altcoin market experiences a resurgence, XRP has struggled to gain traction, lingering between $2.70 and $3 over the past two weeks. Despite excitement surrounding potential exchange-traded funds (ETFs) that could invest in the altcoin, The Motley Fool has warned that the current market correction may last longer than many expect.
Key Points
- XRP has remained stagnant around $3 for the past two weeks.
- High likelihood of ETF approval, but demand remains uncertain.
- Institutional inflows into XRP were only $1.25 billion in the first eight months.
- Analysts predict XRP recovery may not happen until 2026.
- XRP's performance is highly dependent on Bitcoin's movements.
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In-Depth Analysis
In a recent analysis, The Motley Fool noted that XRP's lackluster performance is closely tied to the general malaise in the cryptocurrency market. Traders are currently waiting for Bitcoin (BTC) to rebound and lead the market out of its slump. While there are predictions that the launch of new spot ETFs could bring new capital inflows to XRP, the actual demand for these funds may impact XRP's performance significantly.Several asset managers have applied to the Securities and Exchange Commission (SEC) to create spot XRP ETFs, with Bloomberg estimating a 95% chance of approval. However, despite XRP being the third-largest cryptocurrency globally, actual institutional investment inflows have been relatively low, totaling only $1.25 billion in the first eight months. Even if JPMorgan predicts that upcoming ETFs could attract between $4 billion and $8 billion, analysts assert that these inflows may not significantly impact XRP's price given its current market capitalization of $180 billion.
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Market Impact
Currently, there is considerable optimism about XRP's future, with some analysts predicting prices could reach new highs of $4, $5, or even $10. However, these projections do not consider the risks of short-term price declines. According to crypto betting platform Polymarket, there is a 32% chance of XRP dropping to $2.50 this year and a 30% chance it could fall to $2.40. This suggests that XRP might continue to drift lower over the coming months, with any meaningful recovery potentially not happening until 2026.---
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