XRP continues to face downward pressure, reflecting the broader bearish sentiment across the cryptocurrency market. Currently trading around $2.19, XRP has declined by nearly 2% in a single day and remains approximately 35% below its all-time high of $3.40.
Interest in the cross-border payment token has waned significantly compared to the bullish momentum observed in November, December, and January. This decline is evident in the reduced futures open interest, which now stands at $4.38 billion—down sharply from $7.76 billion recorded on January 17.
Analysts Raise XRP Spot ETF Approval Odds to 95%
In a significant development, Bloomberg analysts Eric Balchunas and James Sayffart have updated their predictions regarding the approval of various spot exchange-traded funds (ETFs). They now assign a 95% probability that a spot XRP ETF will be approved by the U.S. Securities and Exchange Commission (SEC).
Proposals from asset management giants, including Grayscale, Bitwise, Canary Capital, 21Shares, WisdomTree, CoinShares, and Franklin Templeton, have received similar approval odds from the SEC. This heightened probability signals growing institutional acceptance of XRP as a tradable asset on conventional stock exchanges, without requiring direct cryptocurrency ownership.
Despite this optimistic outlook, the price of XRP has not yet reacted to the news. Market participants appear cautious, possibly awaiting more concrete regulatory developments.
XRPL EVM Sidechain Launches on Mainnet
Ripple has officially announced the mainnet launch of the XRPL EVM Sidechain, the result of years of collaborative development with Persyst and the broader ecosystem.
This launch represents a major milestone in integrating Ethereum Virtual Machine (EVM)-compatible smart contract capabilities into the XRP Ledger (XRPL). It enables developers to build, port, and deploy decentralized applications (dApps) that are either cross-chain or exclusively EVM-based.
Key use cases benefiting from this upgrade include:
- Stablecoin issuance and management
- Real-world asset (RWA) tokenization
- Enhanced cross-border payment solutions
These applications rely heavily on robust blockchain infrastructure that offers liquidity, speed, security, and scalability.
David Schwartz, Ripple’s Chief Technology Officer and co-founder, emphasized the significance of this update: “The XRPL EVM Sidechain offers developers a flexible environment to deploy EVM-based applications while maintaining seamless connectivity to the XRPL’s efficiency. It expands the ecosystem’s capabilities without altering the core elements that make the XRPL reliable.”
Technical Analysis: Key Support Levels and Recovery Potential
XRP is currently testing crucial support levels, with its price approaching the $2.06 mark recently examined on Friday. A break below the 50-week Exponential Moving Average (EMA) at $2.18 could signal further selling pressure, potentially revisiting the $1.90 support level tested during the sell-off on June 21.
While a drop below $1.90—just under the 100-week EMA—is considered less likely, traders are closely monitoring key indicators. The Money Flow Index (MFI), currently at 40 and trending toward the midline, suggests a gradual return of risk appetite. This upward momentum in MFI may help stabilize XRP’s price and lay the groundwork for a trend reversal.
Important technical levels to watch include:
- Support: $2.18 (50-day EMA), $2.06, and $1.90
- Resistance: $2.34 (last month’s high) and $2.65 (May’s peak)
Frequently Asked Questions
What determines the total supply of a cryptocurrency?
The total supply of a cryptocurrency is defined by its underlying protocol. Developers set a maximum number of tokens that can be created, often released through mining, staking, or other consensus mechanisms. The circulating supply can decrease due to token burning or assets being sent to unrecoverable addresses.
How is market capitalization calculated?
Market cap is calculated by multiplying the current market price of a cryptocurrency by its total circulating supply. It is a widely used metric to assess the relative size and value of a digital asset.
What does trading volume indicate?
Trading volume refers to the total number of tokens traded within a specific period, such as 24 hours. It reflects market activity and liquidity. Rising volume often indicates increased investor interest or changing market sentiment.
What is funding rate in crypto trading?
Funding rate is a mechanism used in perpetual futures contracts to ensure that the contract price stays close to the spot price. When positive, long traders pay short traders. When negative, short positions fund long positions. This helps balance market demand and prevent significant price divergences.
How do macroeconomic factors influence cryptocurrency prices?
Macroeconomic trends, such as inflation rates, currency fluctuations, and fiscal policies, can significantly impact cryptocurrency markets. For example, a weakening US Dollar Index (DXY) has historically correlated with increased interest in alternative assets like Bitcoin and XRP. 👉 Explore real-time market analysis tools for deeper insights.
What role do EVM sidechains play in blockchain ecosystems?
EVM sidechains enhance a blockchain’s functionality by enabling compatibility with Ethereum-based smart contracts and dApps. This interoperability attracts developers and increases the utility of the native token, often positively influencing its value.