XRP Price Analysis – What we need to know

As the new week unfolds, the focus is on the potential approval of spot Bitcoin ( BTC ) exchange-traded fund (ETF), which could have material implications for XRP and the broader cryptocurrency market.

Crypto analyst Cryptoinsightsuk highlighted the impact of this event on XRP's trajectory. While predicting a potential breakout for XRP, the expert advises vigilance regarding various current events.

The analyst emphasized the importance of XRP maintaining a weekly close above $0.5636, a level that has served as both support and resistance for XRP over the past seven years.

Drawing parallels to previous bear markets, the analyst noted similarities in XRP's current technicals, specifically citing resistance in the $0.56 range followed by consolidation, a pattern seen in 2021.

Additionally, a tight consolidation structure is being recognized within XRP, which from a technical perspective looks more bullish than the one seen in 2017.

While acknowledging the historic explosive moves in XRP's value, the analyst does not expect an identical spike, but speculates that a breakout coupled with OK of ETFs for BTC, could trigger a more impactful price spike for XRP.

As for the sentiment in the XRP community, the analysis acknowledges the prevailing feelings of surrender and frustration due to the perceived stagnation in XRP movement. However, the analyst views this emotional reaction as a potential market reversal signal, suggesting that extreme sentiment often precedes a change in market direction.

Looking at the legal status of XRP in the US, the analyst emphasized that despite the ongoing legal dispute between Ripple and the SEC, XRP is not considered a security in the US. This distinction, which has hung like a cloud over XRP for nearly three years, may have triggered the recent sell-off by holders aiming to take a profit around or a slight loss around $0.90.

As XRP seeks to regain $1, the decision of the SEC-Ripple case remains crucial. However, hopes of an imminent settlement have dimmed as both sides continue to open remedies, which are scheduled to end by February 12, 2024.