XRP’s price fell over 4% to $0.5843 despite the positive Bitwise ETF filing news.
Ripple’s unlocking of 1 billion XRP tokens from escrow has raised investor concerns about increased supply, putting downward pressure on the price.
The price of XRP has slipped over 4% in the last 24 hours, despite a positive announcement regarding Bitwise Invest’s filing for an XRP exchange-traded fund (ETF) in Delaware. On Wednesday, October 2, the altcoin saw its value dip to $0.5843, following a Monday jump that closed at $0.6336. Compared to the broader crypto market, which saw a 4.52% decline, XRP displayed a smaller loss.
XRP Price Chart (Source: CMC )
Recent geopolitical unrest in the Middle East seems to have impacted the global crypto market. Including reports of an Iranian missile attack on Israel, conflicts in the region weighed heavily on market sentiment.
Adding to this pressure, Ripple unlocked 1 billion XRP tokens from escrow, sparking investor concerns about increased supply. Although part of Ripple’s strategy for managing liquidity, the sudden influx has driven the recent price dip.
Despite the challenges, Ripple announced on Monday that it received in-principle approval for a financial services license from the Dubai Financial Services Authority. This approval allows Ripple to launch managed payment services in the UAE, marking a positive step for the company.
Moreover, open interest in the crypto has surged beyond $1 billion, reflecting rising enthusiasm for Ripple’s upcoming RLUSD stablecoin and XRP ETF. The stablecoin is currently in private beta testing and will be launched on both the XRP Ledger and the Ethereum blockchain.
XRP’s Recent Price Rally and Setback
An XRP-spot ETF entering the market could increase demand for XRP and push its value towards $1.00. However, the timeline for ETF approval may hinge on whether the U.S. SEC decides to appeal its ruling in the SEC vs. Ripple case.
Earlier in the year, cryptocurrency experienced a rally from $0.5852 to the $0.750 range following news that BlackRock had filed for an XRP-spot ETF. Unfortunately, it was later revealed that the filing was false, causing the price to fall below $0.60 again.
At the time of writing, XRP is trading at $0.6089, marking a 2.29% drop in the past 24 hours, according to CMC. Interestingly, trading volume has risen by nearly 66%. After climbing to $0.66 on September 29, the price is now undergoing a correction.
If XRP falls below $0.598, it may slide further to test support at $0.553. A drop beyond this could bring the price to $0.53 and even $0.50. On the flip side, if it climbs above the $0.62 resistance level, it could retest the $0.66 level.
While the current market conditions are causing short-term fluctuations, the potential for positive developments like an ETF approval and Ripple’s expansion into new markets keeps the long-term outlook for XRP interesting.
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