XRP News Today: XRP Faces Short-Term Correction Despite Bullish Sentiment

XRP, a prominent digital asset, continues to attract investor interest due to its underlying technology and expanding use cases in cross-border payments. While enthusiasts remain optimistic about its long-term potential, crypto analyst Levi Rietveld advises caution in the short term. Rietveld acknowledges the enthusiasm surrounding XRP but emphasizes the importance of understanding the current technical picture and broader economic landscape.

Rietveld notes that XRP has been trading in an overbought territory for an extended period, which he considers a significant red flag. Historical patterns indicate that similar technical setups have been followed by swift corrections. Additionally, technical indicators such as the FBB on the 15-minute chart show XRP very close to resistance levels. While breaking above these levels traditionally leads to price surges, Rietveld points out that historically, when XRP approaches or breaks above this particular resistance line, it is often followed by substantial corrections.

Beyond the charts, the broader economic environment also plays a critical role in Rietveld’s analysis. He cautions that conditions such as geopolitical instability, Federal Reserve policy, and interest rates do not currently support a surge in market liquidity. According to him, the backdrop is not aligned for a major upward move in assets like XRP. “These things are not really aligning with the fact that we could have a huge swarm of liquidity coming in,” he said, pointing to the low probability of strong, sustained inflows under current conditions.

Another point of concern is the possibility of manipulation in the current market structure. Whales have been making record-breaking moves, and Rietveld believes they may be using the recent momentum to bait retail traders into long positions, only to liquidate them during a sudden reversal. XRP is currently trading at $2.32, up over 6% from last week, but he believes this positive momentum won’t last. “This to me looks like a very short-term move,” he explained, warning that this setup could trap less experienced participants in unfavorable positions.

While some experts expect a major breakout soon, Rietveld is not convinced. He anticipates major moves for the asset in the future, but is not confident that it can sustain this momentum in the short term. The cryptocurrency market is experiencing a significant bullish momentum, with XRP emerging as a focal point for investors. The U.S. Securities and Exchange Commission's approval of Grayscale’s large-cap crypto fund for conversion into an ETF has boosted market sentiment, opening the door for a possible spot ETF for XRP. This development has sparked optimism among XRP bulls, who are eyeing a price target of $10 before the end of 2025.

The technical indicators suggest that XRP is breaking out of a falling wedge pattern, which is typically a bullish sign. The Chaikin Money Flow climbing above zero and the Awesome Oscillator turning green further support the bullish momentum. If this trend continues, XRP could soon break above the $2.71 resistance level and strive for a $3.40 objective in July. However, if demand drops, the price might revert to $1.60, which is close to the 0.618 Fibonacci retracement line.

Some investors are even more optimistic, with one user suggesting that XRP reaching $1,400 is very realistic, referencing its 63,000% rise during the 2017-2018 bull run. This prediction is rooted in historical data, where XRP skyrocketed from just $0.006 to a high of $3.80 in under a year. The current price of XRP, which is trading above $2, mirrors the pre-2018 bull run levels, further fueling the optimism among investors. However, the pace of innovation in the cryptocurrency market remains a concern, as it could impact the price trajectory of XRP.

The bullish trend for XRP is also supported by the overall market sentiment, which is turning green again. The approval of the Grayscale ETF has significantly boosted the market mood and opened the door for a possible spot ETF for XRP. This development has made people more positive about XRP, and many experts believe it may be next in line for a spot ETF clearance in the third quarter of 2025. The technical indicators, such as the Chaikin Money Flow climbing above zero and the Awesome Oscillator turning green, further support the bullish momentum for XRP.

However, there are also concerns about the macroeconomic headwinds that could impact the price trajectory of XRP. The overbought territory and historical patterns suggest that the price of XRP could face resistance in the near future. Additionally, the market psychology and the actions of whales could also impact the price of XRP. Despite these concerns, the overall sentiment for XRP remains bullish, with investors eyeing a price target of $10 before the end of 2025. The approval of the Grayscale ETF and the bullish technical indicators further support the optimism among XRP investors.