Because the altcoin market experiences a resurgence, XRP has struggled to realize momentum, consolidating between $2.70 and $Three for the previous two weeks.
Regardless of the joy surrounding potential exchange-traded funds (ETFs) that might spend money on the altcoin if authorized, The Motley Idiot has cautioned that the present market correction could persist longer than many anticipate.
Warns Of Extended Downtrend
In a current evaluation, the agency attributed a few of XRP’s lackluster efficiency to a basic malaise within the cryptocurrency market, the place merchants are ready for Bitcoin (BTC), the market’s main cryptocurrency, to guide a brand new value rally.
Nonetheless, two crucial components counsel that XRP could face a extra extended downtrend than beforehand anticipated. The anticipated launch of recent spot crypto ETFs has been a focus of dialogue for the reason that starting of the yr.
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A number of asset managers have submitted purposes to the Securities and Alternate Fee (SEC) to create spot XRP ETFs, with Bloomberg estimating a 95% approval chance and on-line prediction markets estimating 94%.
Whereas approval appears possible, the actual query revolves across the demand for these ETFs. XRP, at the moment the world’s third-largest cryptocurrency, undoubtedly has some stage of institutional curiosity, but the precise inflows inform a unique story.
Information signifies that solely $1.25 billion flowed into XRP from institutional traders in the course of the first eight months of 2025. JPMorgan Chase has projected that the upcoming ETFs might appeal to between $Four billion and $eight billion into XRP.
Nonetheless, the agency asserts that even the decrease finish of this estimate may not considerably affect XRP’s value motion over the long-term, given its present market capitalization of $180 billion.
Restoration For XRP Might Not Happen Till 2026
Whereas there’s appreciable optimism amongst analysts concerning XRP’s future, with some value predictions suggesting it might attain new record prices of as much as $4, $5, and even $10, the companies famous that these projections don’t account for the dangers of short-term value declines.
Based on crypto betting platform, Polymarket, there’s a 32% likelihood of XRP dropping to $2.50 this yr, a 30% likelihood it might fall to $2.40, and a 27% likelihood of plummeting to $2.
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These statistics point out that XRP might proceed to float decrease over the following few months earlier than any significant restoration takes place, probably not occurring till 2026.
In the end, The Motley Idiot evaluation means that any upward motion for XRP is more likely to rely upon Bitcoin’s performance. If Bitcoin fails to reclaim its earlier peak by the top of the yr, it will likely be difficult for XRP to provoke its personal rally.
As of this writing, the XRP value has recovered the $3.0675 mark, representing a 1.5% surge inside the final 24 hours. This pales compared to Ethereum’s (ETH) 5% beneficial properties inside the similar time-frame.
Featured picture from DALL-E, chart from TradingView.com
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