November saw one of the worst performances for cryptocurrency markets in recent years, with almost all major crypto assets losing value at double-digit rates. In this chart, Ripple 
$1.92‘s XRP token also could not escape the harsh selling pressure. Moreover, while the launch of two exchange-traded funds (ETFs) in the US that track the performance of the asset is generally seen as a positive development, there was no similar positivity on the price side. XRP, which has fallen by over 15% in the last week, is currently trading around $1.95 after dropping below $1.90 yesterday. The token has retreated nearly 50% since its all-time high recorded in July.
Technical Data Gives a Buy Signal for XRP
However, on-chain data shared by analyst Ali Martinez shows that a short-term relief rally may be on the way for XRP. The TD Sequential indicator, which detects market fatigue and potential turning points in technical analysis, gave a “buy” signal for XRP after the recent declines. The last two times this pattern occurred, XRP was up 14% and 18% respectively. If a similar recovery movement occurs, XRP can be moved back to the $ 2.20 – $ 2.30 band. Therefore, many investors are debating whether current levels represent an opportunity despite downside risks.
Rapid Expansion in XRP ETFs: Third ETF Approval Arrives
Another positive news on the XRP front was the approval of a third spot XRP ETF in the USA. According to information provided by Bloomberg analysts, Grayscale’s XRP Trust product will be converted to ETF format in 2024. Thus, the third XRP ETF will start trading in the US in just two weeks. Although the launch of the first two ETFs created a classic “sell the news” effect on the price side, experts note that the increased product diversity creates a strong foundation for XRP in the long term. It is emphasized that institutional interest may increase, especially if high transaction volume and strong net inflows continue.
On the other hand, the activity on the ETF front for XRP is parallel to other developments showing that institutional demand is increasing in the market. The recent increase in ETF applications for Solana (SOL) revealed that large funds are turning to alternative assets. The acceleration in the Solana ETF process is thought to indicate that institutional capital flows continue across the sector. Experts argue that a similar process could create stronger price effects on the XRP side.
The general picture reveals that XRP has the potential to recover, despite the sharp declines it has experienced in recent months, thanks to technical indicators and progress on the ETF front. However, the volatility in the market is still high, requiring investors to be cautious. For this reason, it is important to closely monitor the pressure that macro developments may create, as well as the possible upward scenario.
