XRP ETF Speculation Grows Amid Market Uncertainty
Key Takeaways
- XRP is in the spotlight due to speculation about a potential ETF (Exchange Traded Fund).
- The anticipated launch of the ProShares XRP ETF is delayed – no specific date has been announced.
- Market participants still expect approval of a XRP spot ETF in the U.S. in the near future.
- Analysts warn of a potential price drop to as low as 2 US dollars or below.
- Options markets show mixed expectations – both bullish and bearish positions are strongly represented.
ETF Speculation Drives XRP Price
XRP, the cryptocurrency by Ripple, is currently receiving significant attention. The reason is speculation surrounding a possible exchange-traded fund (ETF). A futures-based XRP ETF from ProShares is particularly in focus. Originally, a launch was expected on April 30. However, according to Bloomberg analyst James Seyffart, the start has been delayed. No concrete date has been set – but the launch is expected in the short to medium term.
If approved, the ETF would be one of the first leveraged XRP ETFs in the U.S., alongside Teucrium. Additionally, the launch of XRP futures on the CME (Chicago Mercantile Exchange) is planned for May. This increases the likelihood that a spot ETF could be approved in the U.S. The platform Polymarket sees a 78% chance of approval by the end of 2025.
Risks Despite Positive Sentiment
Despite optimistic assessments, market analysts are warning of potential setbacks. The analysis platform Aphractal draws parallels to the launch of the Bitcoin ETF. At that time, an excess of long positions led to a drop in Bitcoin’s price by 11,000 US dollars before a recovery set in.
Aphractal sees a similar pattern for XRP. Many long positions are concentrated around the 2 US dollar mark. These liquidity zones can act as “price magnets” – favouring price movements in that direction. A short-term drop to 2 US dollars or below is therefore not out of the question.
Options Markets Show Mixed Expectations
A look at the derivatives exchange Deribit shows that major market participants are hedging. The most traded option is a put (a bet on falling prices) with a strike price of 1.40 US dollars expiring on May 30. In second place is a call (a bet on rising prices) with a strike price of 2.275 US dollars expiring on April 30.
This distribution indicates uncertainty in the market. While some traders are betting on further gains, others expect a drop below the 2-dollar mark.
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Technical Chart Outlook for XRP
XRP is currently defending short-term support at 2.10 US dollars. The price is above the 200-day moving average (200DMA), which is generally considered a positive signal. A sustained breakout above 2.40 US dollars could give bulls more room to run.
However, if a decline occurs, the levels at 2.10 US dollars, the 200DMA, or 1.40 US dollars could act as the next support zones. The latter corresponds to a previous consolidation area from November.
Our Assessment
The current developments around XRP show how strongly regulatory expectations can influence prices. An ETF launch could cause short-term volatility – both upward and downward. Those who are invested in XRP or are considering investing should be aware of the risks. In particular, the high liquidity around the 2-dollar mark can lead to rapid price movements.
In the long term, ETF approval could attract more institutional attention to XRP. In the short term, however, caution is advised. Closely monitor the development of CME futures and further statements from regulatory authorities. Active traders should consider hedging strategies.
Sources
- Polymarket
- Bloomberg Analyst James Seyffart
- Aphractal
- Deribit
- TradingView
| Symbol | XRP |
| Coin type | Alt Coin |
| Transaction Speed | High |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $2.25 |
| 24h % | -1.45 % |
| 7d % | 0.82 % |
| 30d % | 7.10 % |
| 60d % | 2.87 % |
| 1y % | 335.75 % |
| Official Links | Website |
| Socials | X |
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