XRP Price Wavers as New ETF Gains Traction: Is a Breakout Coming?

TLDR

• XRP price remained steady at $2.40 following the launch of the XRPC ETF on November 13.
• The XRPC ETF became the second fund to track the Ripple token, after the REX-Osprey XRP ETF.
• The XRPC ETF was launched under the Securities Act of 1933, a more widely accepted framework.
• Trading volume for the XRPC ETF surged to $26 million within the first 30 minutes of trading.
• JPMorgan forecasts that new XRP ETFs could attract over $8 billion in inflows during the first year.

XRP’s price remained stable after the debut of the first spot ETF tracking the Ripple token. The launch of the XRPC ETF on November 13 coincided with a surge in trading activity. XRP was priced at $2.40, showing minimal movement compared to recent days. This level is slightly higher than the month’s low of $2.070.

XRPC ETF Debuts on Nasdaq

The XRPC ETF, launched by Canary, now tracks XRP, making it the second ETF to do so. The first such ETF, the REX-Osprey XRP ETF (XRPR), has already gathered over $120 million in assets. The key difference between the two ETFs is that XRPR is registered under the Investment Company Act of 1940, while XRPC is registered under the Securities Act of 1933.

XRPC’s launch, however, appears to be more favorable to investors. “The ’33 Act is more widely accepted,” explained a market analyst. American investors have embraced the new ETF, with trading volume reaching $26 million in the first 30 minutes. This sharp increase in volume places XRPC on track to surpass the Bitwise Solana Trust ETF, which saw $57 million in its debut.

Several companies are expected to launch more XRP ETFs in the near future. Filings from firms such as Franklin Templeton, Bitwise, and Invesco are already in process. JPMorgan projects these funds could raise over $8 billion in the first year.

Despite the positive market reception, XRP’s price remained largely unaffected. Analysts had already predicted approval of the XRPC ETF with odds above 98%. Therefore, the ETF launch did not surprise many investors.

XRP Price Faces Downward Pressure

XRP’s price has faced downward pressure due to broader market conditions. The crypto market as a whole has struggled in recent months, with the total market capitalization standing at $3.4 trillion. Bitcoin’s price recently dipped to $100,000, further weighing on investor sentiment.

Technically, XRP has remained within a descending price channel, suggesting persistent selling pressure. The token has also formed a death cross, with the 50-day and 200-day moving averages intersecting. A death cross is typically seen as a bearish technical indicator. Therefore, the outlook for XRP’s price remains uncertain, with the next key level at $2.00.

XRP price chart: Source- TradingView

A move above the upper bound of the descending channel, however, could signal a potential rally. For now, XRP’s price continues to hover around $2.40. The ongoing market conditions and technical factors will likely dictate the next major move for XRP.

The post XRP Price Wavers as New ETF Gains Traction: Is a Breakout Coming? appeared first on CoinCentral.