XRP Price Consolidation: ETF Approval Could Trigger Sharp Rise

XRP's price has been consolidating around $2.5, which could signal a potential increase in the altcoin's value. Market experts anticipate a sharp rise in XRP's price if the U.S. approves an XRP-focused ETF today, which could trigger a sudden buying pressure and push the price over $4.

Despite the price consolidation, XRP has seen increased trading activity, with liquidations from both buyers and sellers reaching $4.45 million recently. The positive funding rate of 0.0044% suggests that buyers have the advantage, fueled by rising hope that the U.S. Securities and Exchange Commission (SEC) will approve a spot XRP exchange-traded fund (ETF).

Several companies, including Cboe BZX, have recently applied to launch XRP-linked ETFs, boosting market hope. If approved, these funds could attract significant investment from institutions, increasing demand for XRP. However, the long/short ratio is suggesting a rise in short positions for XRP price, with around 63% of positions betting on a price decline.

XRP has been trading below the moving averages since February 4, but the price continues to consolidate around $2.5. If the price falls below the trend line, it might retest buyers' patience at $2.26. If bulls fail to defend that level, we might see a sharp decline toward the $1.96. On the other hand, if the price breaks above the moving averages and holds, it means the bulls have overcome the selling pressure. A surge above $2.8 might boost the buying pressure, resulting in a strong surge toward the $3.4 level. A successful move above this level could open the way for a potential rise to $4.