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Steve Muchoki
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Key Notes
- The positive correlation between Bitcoin and XRP could see the latter drop further towards the support level around $1.7 soon.
- The imminent approval of spot XRP ETFs in the US will rejuvenate bullish sentiment ahead.
Ripple Labs-backed XRP XRP $2.06 24h volatility: 0.6% Market cap: $120.37 B Vol. 24h: $1.51 B was among the hardest-hit top altcoins in the past 24 hours as Bitcoin BTC $84 429 24h volatility: 0.5% Market cap: $1.68 T Vol. 24h: $9.38 B slipped below a crucial support range between $91K and $92K. The utility-focused large-cap altcoin, with a fully diluted valuation of about $214 billion and a 24-hour average trading volume of around $10.5 billion, dropped over 13% in the past 24 hours to trade about $2.15 on Tuesday, February 25, 2025, during the mid-London session.
Following the heightened XRP volatility in the past two days, a total of $56 million was liquidated from its leverage market. Worth noting that over $52 million of XRP’s liquidated trades in the last 24 hours involved long traders mostly from Bybit, Binance, and OKX.
Following the heightened market volatility, on-chain data shows XRP whales have drastically reduced their aggressive accumulation experienced late last year. For instance, around 52 million coins, worth over $128 million, were transferred to the Bybit exchange in the past 24 hours.
🚨 🚨 🚨 🚨 🚨 🚨 51,999,999 #XRP (128,782,393 USD) transferred from unknown wallet to #Bybithttps://t.co/4C8SlWy76u
— Whale Alert (@whale_alert) February 24, 2025
Midterm Expectations for XRP Price
As Bitcoin price signals further short-term bearish sentiment, it is safe to assume that XRP will follow in tandem in the subsequent weeks. Furthermore, XRP price has depicted a positive correlation with Bitcoin price in the past four months.
From a technical analysis perspective, XRP price dropped below a crucial support level of around $2.26, thus confirming further bearish sentiment. According to crypto analyst Ali Martinez, XRP is en route to retesting a crucial support level above $1.65.
$XRP is breaking out of an ascending parallel channel, targeting $1.65! pic.twitter.com/7WhTmy7mLf
— Ali (@ali_charts) February 25, 2025
Bigger Picture
As Coinspeaker previously reported, the rise of XRP in the past few months has been bolstered by the rising demand from institutional investors and notable changes in the regulatory environment in the United States. Already, several prominent firms have filed for spot XRP ETFs in the United States, with the US SEC acknowledging some of the filings.
For instance, 21Shares filed the S-1 for 21Shares Core XRP Trust late last year with the aim of listing it on the Cboe BZX exchange. Earlier this month, the US SEC acknowledged the filing, thus opening a 21-day period for public comment. WisdomTree also filed its spot ETF late last year, with the US SEC having already acknowledged the filing.
Other notable fund managers that have filed for spot XRP ETFs in the United States include CoinShares, Canary Capital, and Bitwise Asset Management. The crypto regulatory shift in the US SEC under President Donald Trump has increased the odds of the ongoing Ripple case ending soon and approval of spot ETF in the coming months.
Meanwhile, Ripple Labs has made strategic XRPL developments and inked dozens of partnerships to enable a seamless mainstream adoption of XRP.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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