The current consolidated pattern in XRP’s price could signal trouble for sellers because it seems the altcoin might be gearing up for a sharp increase. Many experts expect big rises in XRP’s value as the market becomes more hopeful about the U.S. approving an XRP-focused ETF today. This approval could trigger a sudden buying pressure, potentially pushing XRP’s price over $4.
XRP Demand Grows with Positive Market Indicators
XRP is seeing more trading action even as its price consolidates, according to Coinglass, which reports an increase in liquidations from both buyers and sellers. The total amount liquidated recently reached $4.45 million, with buyers accounting for about $2.15 million and sellers for approximately $2.3 million. This indicates that traders are actively engaging with XRP despite its steady price.
Additionally, the funding rate for XRP remains positive at 0.0044%, suggesting that buyers have the advantage. XRP’s positive market sentiment is fueled by rising hope that the US Securities and Exchange Commission (SEC) will approve a spot XRP exchange-traded fund (ETF), as reported by FOX Business journalist Eleanor Terrett.
Terrett referred to a chart by Bloomberg ETF analysts Eric Balchunas and James Seyffart, suggesting that the SEC might officially respond to Grayscale’s application for the XRP ETF by Thursday, Feb. 13.
She noted that the SEC typically takes about 15 days to respond to such filings, and Grayscale submitted their application on Jan. 30.
Also read: Why XRP Price Is Up Today?
Several companies, including Cboe BZX, have recently applied to launch XRP-linked ETFs, boosting market hope. If approved, these funds could attract significant investment from institutions, increasing demand for XRP.
However, the long/short ratio is suggesting a rise in short positions for XRP price. Data reveals that the ratio is currently at 0.5868. This indicates that a majority of traders are now taking short positions, expecting the XRP price to correct downward. Currently, around 63% positions are betting on a price decline.
What’s Next for XRP Price?
XRP has been trading below the moving averages since February 4. However, a slight positive is that the price continues to consolidate around $2.5. This has created a narrow price range between $2.32 and $2.51, showing mixed sentiment between buyers and sellers. As of writing, XRP price trades at $2.43, surging over 2.1% in the last 24 hours.
If the price falls below the trend line, it might retest buyers’ patience at $2.26. If bulls fail to defend that level, we might see a sharp decline toward the $1.96.
On the other hand, if the price breaks above the moving averages and holds, it means the bulls have overcome the selling pressure. A surge above $2.8 might boost the buying pressure, resulting in a strong surge toward the $3.4 level. A successful move above this level could open the way for a potential rise to $4.
