XRP Price Analysis – What You Need to Know

As the new week unfolds, the focus is on the potential approval of a spot Bitcoin (BTC) exchange traded fund (ETF), which could have significant implications for XRP and the broader cryptocurrency market.

Crypto analyst Cryptoinsightsuk highlighted the impact of this event on XRP’s trajectory. While anticipating a potential breakout for XRP, the expert advises vigilance regarding various current events.

The analyst stressed the importance of XRP maintaining a weekly close above $0.5636, a level that has served as both support and resistance for XRP over the past seven years.

Drawing parallels to previous bear markets, the analyst noted similarities in XRP’s current technicals, specifically citing resistance in the $0.56 range followed by consolidation – a pattern seen through 2021.

Additionally, a tight consolidation structure within XRP is recognized, which from a technical perspective appears more bullish than that seen in 2017.

While acknowledging the historical explosive moves in XRP value, the analyst does not expect an identical surge, but speculates that a breakout coupled with ETF approval for BTC could trigger a more impactful price surge for XRP.

As for sentiment in the XRP community, the analysis acknowledges prevailing feelings of capitulation and disappointment due to the perceived stagnation in XRP’s movement. However, the analyst views this emotional reaction as a potential signal of a market reversal, suggesting that extreme sentiment often precedes a change in market direction.

Examining the legal status of XRP in the US, the analyst highlighted that despite the ongoing legal dispute between Ripple and the SEC, XRP is not considered a security in the US. This distinction, which has stood as a cloud over XRP for almost three years, may have triggered the recent selling by holders aiming to exit at a profit around or a slight loss around $0.90.

As XRP seeks to regain $1, the resolution of the SEC-Ripple case remains crucial. However, hopes for an early settlement have diminished as both sides proceed with discovery remedies, which are scheduled to be completed by February 12, 2024.