TL;DR

XRPs price has been quite volatile over the past few weeks and some analysts predict an upcoming dip before the asset could head toward new peaks. ETF approval prospects, increased whale accumulation, and RLUSD’s expansion could enhance XRP’s adoption and drive upward momentum.

What Could be Next?

The start of the month has been quite turbulent for Ripples native token, with its price briefly tanking below $2 during the crypto crash of February 3. XRP bulls reacted almost imminently to the downside and pushed the valuation to around $2.80 a day later.

However, the asset couldnt keep the momentum, dropping below $2.50 on February 5. In the following days, the bears continued to prevail, and XRP is currently trading at around $2.42 (per CoinGeckos data).

XPR Price, Source: CoinGecko One person paying close attention to XRPs performance as of late was the popular X user CRYPTOWZRD. They believe the asset closed the weekend indecisively but expect a push to the $2.80 resistance level. On the other hand, the analyst outlined $2.05 as a major support zone. 

I expect to see further upside pressure from this region to get the next long opportunity. A positive Bitcoin will be welcomed, they added.

Another individual who chipped in is the X user Sjuul, who predicted a short-term rally above $3. However, the analyst warned that the asset might have a bumpy ride before reaching that peak, envisioning a potential plunge to $2.10. 

A sweep at around $2.10 would be an ideal area to do some business, Sjuul claimed. 

The Bullish Signals

Besides the optimistic predictions from multiple analysts, there are some factors indicating that XRP could indeed be preparing for another leg up. 

Such an example is the possible approval of spot XRP exchange-traded funds (ETFs) in the USA. Recall that on February 6, Cboe BZX Exchange lodged 19b-4 filings on behalf of Canary Capital, WisdomTree, 21Shares, and Bitwise. The US SEC now must approve or reject the applications within 240 days. 

If given the go-ahead, American investors would have more opportunities to invest in Ripples native token, which could push its price upward.

Next on the list is the whales activity. Ali Martinez recently disclosed that large investors purchased 520 million XRP (worth over $1.2 billion at current rates) during the latest dip. This move decreases the available supply, potentially leading to a rally (assuming demand doesnt head south).

Last but not least, we will touch upon the advancement of Ripples stablecoin RLUSD. The product, pegged 1:1 to the American dollar, officially saw the light of day in mid-December, with many leading cryptocurrency exchanges embracing it.

Its further progress could strengthen Ripples ecosystem, boost XRPs utility and adoption, and potentially lead to upward price pressure.