XRP News Today: XRP Drops 40% in Q2 Amid ETF Approval Hopes

XRP has faced significant challenges in the second quarter of the year, with its price dropping below $2 on two separate occasions. This decline has been attributed to waning momentum and the inability of bulls to reclaim key levels. The cryptocurrency closed the first quarter at $2.13, a notable decrease from its January peak of $3.40. The second quarter has seen further losses, with the price failing to sustain above the $2 mark, indicating a period of weakness and indecision in the market.

Despite these setbacks, there is a glimmer of hope for XRP. According to analysts, there is a 95% probability that an XRP ETF will be approved. This approval could potentially drive significant institutional interest and investment into the cryptocurrency, similar to the impact seen with Bitcoin and Ethereum ETFs. The approval of an XRP ETF could act as a catalyst for a major revaluation of the cryptocurrency, potentially leading to a substantial increase in its price.

One model suggests that if XRP ETFs capture just 35% of the flows seen by Bitcoin ETFs, it could result in $16.331 billion in net inflows into Ripple’s ecosystem. Given XRP’s current market cap of $125.87 billion and a circulating supply of 58.93 billion tokens, even a conservative estimate points to a potential upside of $1.759 trillion. This would place XRP’s projected price at approximately $29.89, representing one of the most significant upside scenarios currently being discussed.

However, the technical outlook for XRP remains challenging. Despite signs of strain, there has not been a full-scale capitulation among holders. On-chain data shows that the 10k–100k wallet cohort controls 11.35% of the supply, while the <100k cohort holds a dominant 84%. Together, these groups account for 95% of XRP’s circulating supply, indicating a highly concentrated ownership structure. If the ETF is approved, this concentration could quickly transform into a major revaluation trigger, potentially pushing XRP’s price to $30 or higher.

In summary, while XRP has faced significant technical challenges and price declines in recent months, the potential approval of an XRP ETF presents a compelling narrative for a major revaluation. The concentrated ownership structure and the potential for significant institutional inflows could drive XRP’s price to new heights, making a $30 price target a realistic possibility under the right conditions. However, the actual demand and market response to the ETF approval remain uncertain and will be crucial factors in determining XRP’s future trajectory.