The cryptocurrency market is abuzz with anticipation as analysts forecast substantial gains for XRP, driven by growing optimism surrounding the potential approval of a spot XRP exchange-traded fund (ETF) in the United States.
XRP has witnessed an 8% recovery from its low of $2.26 on 7 February, with a 2% increase in the past 24 hours. Investors are closely monitoring its trajectory, with speculation mounting over its next major move.
XRP Fibonacci Indicators Suggest Possible Bullish Reversal
According to cryptocurrency analyst CoinsKid, XRP has been experiencing an extended flat correction since December 2024. The analyst suggests that the token is approaching a pivotal moment in its price structure, potentially leading to a corrective phase.
“The final 5th of the 3rd wave to the 2.618 Fibonacci extension level is about to commence, after which I anticipate a bearish correction for XRP once again,” the analyst stated.
CoinsKid’s analysis, which considers historical price trends from the lows of January 2023 to the rally of July 2024, indicates that XRP may still experience a parabolic surge towards $8, aligning with the 1.272 Fibonacci level.
“The duration of the Wave 4 correction remains uncertain, but I believe a broader macro Wave 5 could eventually push XRP to the 1.272 Fibonacci retracement level at $8,” the analyst added. However, they cautioned that XRP has now entered a “maximum risk zone,” increasing the likelihood of a reversal to the 0.786 Fibonacci level at $0.388 or the 1.618 level at $0.82.
ETF Optimism Fuels XRP’s Bullish Sentiment
Rising expectations surrounding a spot XRP ETF approval have further buoyed market sentiment. FOX Business journalist Eleanor Terrett highlighted the possibility that the US Securities and Exchange Commission (SEC) may soon acknowledge Grayscale’s 19b-4 filing for an XRP ETF.
Terrett pointed to a chart compiled by Bloomberg ETF analysts Eric Balchunas and James Seyffart, noting that the SEC typically takes up to 15 days to acknowledge a 19b-4 filing. With Grayscale having submitted its application on 30 January, a formal response could come as early as 13 February.
“Regardless of the outcome, it will provide insight into the current SEC commission’s stance on XRP,” Terrett stated.
Balchunas and Seyffart also identified XRP, alongside Litecoin (LTC), Solana (SOL), and Dogecoin (DOGE), as cryptocurrencies with a strong likelihood of ETF approval, estimating a 65% chance for XRP.
Institutional Interest in XRP ETFs Continues to Grow
A potential XRP ETF approval could pave the way for institutional investment, significantly increasing demand for the asset. Pseudonymous crypto analyst “Easy” noted that with filings now in place and no major SEC obstacles remaining, an XRP ETF could gain approval as early as Q2 2025.
“With no SEC roadblocks left, the path is clear,” the analyst posted on X (formerly Twitter) on 13 February.
Several asset management firms, including Cboe BZX and Grayscale, have already submitted applications for XRP-linked ETFs, further fueling speculation over the asset’s mainstream adoption. While regulatory timelines remain uncertain, the ongoing developments mark a significant step toward institutional recognition of XRP in the financial markets.
