XRP Price Prediction: XRP Pulls Back After Hitting $2.6 – Crash Landing Coming?

XRP (XRP) has lost more than 5% of its value in the past 24 hours and currently sits at $2.4 as the crypto market as a whole started the week on a negative note.

Over $500 million worth of long positions have been liquidated during this period as top altcoins like Ethereum (ETH) and BNB Coin (BNB) have booked similar losses, while others like Sui (SUI) are dropping by 8%.

The Federal Reserve cut rates last week as the market expected, but the head of the U.S. central bank said that there was no certainty that they would reduce rates once again in December, as analysts expected.

Prior to Jerome Powell’s comments, the odds of a rate cut in the last month of the year stood at 91.1%. At the time of writing, data from FedWatch shows that those odds now sit at 67.1%.

Upcoming ETF Approvals Could Help XRP Recover

XRP received a short-term boost recently amid the launch of a massive $1 billion crypto treasury by Evernorth. However, sentiment soured right after the FOMC meeting.

After a relatively calm weekend that shaped up for a recovery, the week has started with a strong plunge. This may be the result of changing predictions across market analysts and the release of client notes outlining the potential impact of a “no cut” scenario in December.

Meanwhile, the only exchange-traded fund (ETF) offering some sort of spot exposure to XRP, the REX-Osprey XRP ETF (XRPR), has managed to keep its assets above the $100 million mark.

Pending ETF Applications for XRP – Source: The Block

Many other asset management firms, including CoinShares, 21Shares, and WisdomTree are waiting for the Securities and Exchange Commission (SEC) to approve their spot vehicles.

The U.S. government shutdown, which is now 34 days in, has delayed the approval of these funds. It may be just a matter of time for this impasse to be resolved, which could open up the floodgates of new ETF approvals, including many of these XRP-linked funds.

Recently, Bitwise managed to get listed a Solana ETF with a staking feature that the market has rapidly embraced. In just a few days, this vehicle has attracted $400 million in assets, primarily amid its attractive staking rewards of 7% per year.

Although an XRP ETF will lack this staking addendum, it could still draw significant interest from retail investors who would rather get exposure to the token via the regulated markets.

XRP Could Drop to $2 If Negative Momentum Gains Traction

Looking at the 4-hour chart, we can see that a downtrend had been forming in the past few weeks for XRP that could end up pushing the token to $2.1 or lower if negative momentum accelerates.

XRP/USD Daily Chart (Binance) – Source: TradingView

Right now, the key support to watch is $2.25 – a level from which the token bounced strongly on two recent occasions. The Relative Strength Index (RSI) dipped below the 14-period moving average, meaning that the downtrend keeps marching onward.

We could expect a bounce off this level, unless the market fully panics. However, market sentiment remains heavily depressed as the Fear and Greed Index currently sits at 36, down from a 30-day high of 62.

The odds favor a move toward $2 at some point. Since the long-term outlook remains positive for cryptos, this temporary weakness could be considered an opportunity to buy for those who believe that the market will close the year with strong gains.