XRP News Today: Crypto Market Drops 2% XRP Faces 3% Loss Despite 95% ETF Approval Odds

The cryptocurrency market has experienced a downturn this week, with the total market capitalization shrinking to $3.25 trillion after a 2% loss on Tuesday. Bitcoin, the leading cryptocurrency by market cap, is trading below $106k, while Ether continues to struggle within the sub-$2,400 region. XRP, Ripple’s native coin, has also seen a decline, losing 3% of its value in the last 24 hours. However, analysts remain optimistic about its short to medium-term performance due to strong fundamentals.

Analysts have raised the odds of a spot XRP ETF being approved by the United States Securities and Exchange Commission (SEC). According to projections by analysts, there is a 95% chance that the SEC will approve a spot XRP ETF. Several asset management firms, including Grayscale, Bitwise, Canary Capital, 21Shares, WisdomTree, CoinShares, and Franklin Templeton, have filed for spot XRP ETFs with the SEC. The analysts believe that the SEC could approve all applications, with one analyst suggesting that the ETF could launch before the end of the year.

Despite the bearish trend, XRP could rally higher soon if analysts’ predictions hold. The XRP/USD 4-hour chart is currently bearish, with the Relative Strength Index (RSI) of 48 indicating that XRP is losing its buying pressure and sellers are taking control. The Moving Average Convergence Divergence (MACD) is still within the positive territory but could dip into the negative zone soon. If the bearish trend persists, XRP could test the $2.06 support level over the next few hours, with a drop below this level potentially triggering a further selloff that could see XRP test the $1.90 low for the second time in three weeks.

However, the fundamentals are currently in favor of an XRP rally. If the bulls regain control, XRP could test last month’s high of $2.34. In the event of an extended rally, XRP could touch the $2.65 level for the first time since May. Key areas of interest to traders remain the $2.06 support level, the 50-day EMA support at $2.18, the first resistance level at $2.34, and the high of $2.65 it achieved in May, prior to the Iran-Israel conflict.