XRP price at risk of a 25% drop to $1.55: Here is why

An XRP analyst has projected that spot ETFs could rapidly consume available tokens if significant inflows continue. The model suggests that a single XRP ETF could see daily inflows averaging $90 million, leading to a potential demand for over 229 million XRP in just one day. This scenario raises concerns about the limited public supply of XRP amidst increasing ETF interest.

XRP price is currently consolidating within a breakout pattern as traders anticipate the impact of the Bitwise XRP ETF launch scheduled for November 20. At the time of reporting, XRP was trading at $2.13, reflecting a 1.1% decline over the past 24 hours amid a mixed crypto market.

Bitwise's new XRP exchange-traded fund (ETF) is scheduled to launch on Thursday under the ticker 'XRP'. This marks a significant expansion of Bitwise's cryptocurrency offerings, which previously focused primarily on Bitcoin. The launch is anticipated to attract institutional investors and enhance market participation in the cryptocurrency sector.

XRP has experienced a significant decline, falling below the critical support level of $2.15. The drop is attributed to broader weakness in the cryptocurrency market and Bitcoin's recent 'Death Cross' pattern, which typically signals a bearish trend. This downturn occurs despite the absence of major catalysts influencing XRP's price directly.

On-chain data indicates that XRP retail investors have seen a 60% increase in profitability despite recent market downturns. This figure is compared to Bitcoin and Ethereum, highlighting XRP's resilience in the current cryptocurrency landscape. The analysis by Glassnode sheds light on the profitability of retail investors in the top assets.

XRP's price action is currently following a corrective structure, indicating a potential drop toward the key support level of $2.03. As momentum cools and Wave 2 behavior unfolds, analysts suggest that the market may be preparing for one final dip before a shift to an uptrend. A decisive breakout above the $2.41 resistance level could invalidate this downward trajectory.

The SEC is advancing Bitwise's cryptocurrency ETF proposal, which includes XRP and Solana as key components. This move reflects a growing acceptance of cryptocurrencies in traditional finance, as the SEC's approval could pave the way for more institutional investment in these digital assets. The positive sentiment surrounding XRP and Solana indicates their resilience in a fluctuating market.

Bitcoin futures traders are showing resilience despite the cryptocurrency's price dropping to $89,000. The stability in the derivatives market suggests that traders may be anticipating a potential price reversal, indicating a level of confidence amidst the recent downturn.