XRP's Price Plummets 25% Amidst Ripple's Selling Pressure

XRP's price has been under significant pressure, with a weekly decline of around 25% and a current trading price of $2.30. Despite a strong start to the year, the coin has struggled to maintain its momentum and reclaim the $3 mark. Market analysts attribute this decline to constant selling pressure from Ripple Labs, the largest XRP holder, which lacks substantial operating cash flow and relies on selling XRP to stay afloat.

The uncertainty surrounding the SEC's appeal in the Ripple case continues to weigh on XRP's price. Market sentiment suggests that a withdrawal of the appeal could lead to a rally beyond the $3 mark, while a forward movement could result in additional selling pressure. Some analysts, such as ProjectSyndicate, predict a 40% upward move for XRP in the near future, although they caution that the current market price offers limited upside and that the pullback may not be over yet.

One of the major catalysts for XRP this year could be the approval of an XRP ETF. On Thursday, the Cboe Exchange filed applications with the SEC to list and trade spot XRP ETFs from WisdomTree, Bitwise, 21Shares, and Canary. JPMorgan analysts estimate that the launch of SOL and XRP ETFs could collectively bring in up to $14 billion in investments. However, unlike prior crypto ETF approvals, XRP does not have an established CME futures market, which has been a key criterion for the SEC when approving Bitcoin and Ethereum ETFs. Despite this, the leaked CME futures listing could potentially presage a spot ETF approval, with initial demand estimated to be modest at around $2 billion AUM based on global ETP patterns.

Long-term catalysts for XRP include the possibility of XRP Ledger, as a Layer 1 platform, experiencing growth similar to Solana, and the adoption of RLUSD, which could enhance XRP's utility. However, the visibility of both scenarios remains limited. Additionally, there is speculation about whether XRP will be included as part of the Trump's digital asset stockpile, which may be revealed within the next six months.