XRP’s current price action near $2.87 is navigating a confluence of technical indicators, regulatory uncertainty, and market anticipation for a spot exchange-traded fund (ETF).
Technical analysis reveals potential near-term pressure, with a 3-day TD Sequential indicator flashing a sell signal near the $2.87 level. This suggests possible selling pressure could emerge, highlighting $2.40 as a critical support zone to watch for downside stability.
Despite the bearish signal, chart patterns offer a contrasting outlook. Trading within a falling wedge formation indicates a potential bullish reversal scenario. A decisive breakout above wedge resistance at approximately $3.07 could trigger a 20% upward price movement.
Legal developments remain a pivotal factor. An upcoming status report from the U.S. Securities and Exchange Commission (SEC), anticipated by August 15, holds significant sway over market sentiment and XRP’s near-term price stability. The resolution of this prolonged legal case continues to be closely monitored.
Market optimism is buoyed by the high, estimated 90% probability of a spot XRP ETF gaining approval by October. Positive developments toward this goal are likely to serve as a substantial catalyst for price appreciation.
On-chain data underscores ongoing large-scale market adjustments related to the regulatory landscape, exceeding $41 million. Potential additional penalties, estimated around $125 million, contribute to the complex factors shaping XRP’s investment outlook.