- XRP must hold above $2.27 to maintain its bullish momentum toward $3.
- A double-bottom breakout could push XRP’s market cap to $3.4T, targeting $59.
- Institutional interest in XRP ETFs is rising, signaling growing investor demand.
XRP’s price movement remains a hot topic for traders as it tests a crucial support level that could dictate its next major move.
To simplify, crypto analyst Ali Martinez has created a chart to show how XRP must hold above $2.27 to keep its uptrend alive.
XRP’s Line in the Sand: Hold $2.27 or Risk a Fall
A drop below this level could kill its bullish momentum, while a successful hold may drive the token toward $3.
Currently trading at $2.44, the growing institutional interest in XRP-based exchange-traded funds (ETFs) signals an easier way for investors to steer the asset’s future direction.
XRP has been trading within an upward parallel channel on the four-hour chart since December 2024. Even with market fluctuations, it continues to set higher lows, solidifying its long-term uptrend.
However, lately XRP has been sliding below the median line of this channel, and is now testing the lower boundary.
Key $2.27 Level: Uptrend Lifeline or Trapdoor?
As seen from the chart on X, Martinez warns that a break below $2.27, which lines up with the Fibonacci 23.6% retracement level, could undo XRP’s current uptrend.
On the other hand, staying strong above this support could create enough momentum to push XRP toward $3, which sits around the 78.5% Fibonacci retracement level.
Notably, XRP has already bounced off this support twice in February, showing strong demand at this price zone.
Related: XRP Primed for Major Breakout? Analyst Pinpoints Bold $8.76 Target
Market Capitalization and Growth Projections
Crypto analyst Steph Is Crypto highlights a significant breakout pattern in XRP’s market capitalization chart.
The analysis hints at a potential double-bottom breakout, with a target of $3.4 trillion. If this projection plays out, XRP’s price could surge to $59 per token, a massive 24x increase from its current level.
Such a move would require substantial capital inflow and sustained demand. Still, with more and more interest from institutional investors and developments in the ETF space, XRP’s long-term potential remains strong.
Institutional Interest in XRP ETFs Gains Momentum
The race to launch XRP-based ETFs is really picking up speed as major financial institutions position themselves for regulatory approval.
Grayscale has proposed converting its XRP Trust into an ETF, while Nasdaq is pursuing listings for both XRP and Litecoin ETFs through CoinShares. Meanwhile, CBOE has a bunch of applications from asset managers such as Canary, 21Shares, Bitwise, and WisdomTree.
Related: XRP ETFs Edge Closer to SEC Approval Following Multiple 19b-4 Filings
Pro-XRP lawyer Jeremy Hogan believes the approval process for these ETFs may not take long. However, he points out that the S-1 registration process could extend the timeline to eight to twelve months.
Even with regulatory hurdles, demand for crypto-based ETFs continues to rise, with more firms betting big on the growing interest in XRP.
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