XRP price pulled back today, Nov. 11, as the recent rally took a breather ahead of the upcoming approval of exchange-traded funds.
Summary
- XRP price remained under pressure as whales continued selling.
- There is hope that spot XRP ETFs will start trading this week.
- Technicals suggest that the token may drop after the approval.
Ripple (XRP) token was trading at $2.45, a few points below this week’s high of $2.57. It has dropped by over 33% from its highest level this year.
The token pulled back even after Canary filed its 8A filing with the Securities and Exchange Commission. This is usually the last filing ETF issuers make before the launch. As such, Bloomberg’s Eric Balchunas expects it to start trading either on Wednesday or Thursday.
Other XRP ETFs are likely to be launched this month, as nine of them have already been listed on the Depository Trust & Clearing Corporation (DTCC).
Why XRP price may pull back after the ETF launches
In theory, the upcoming XRP ETF launches will be bullish for the coin as it will lead to more inflows. The REX-Osprey XRP ETF has demonstrated this, as it has already received over $120 million in assets.
Similarly, the recently launched Solana ETFs have already had over $300 million in inflows. As such, XRP funds are likely to attract more demand, with JPMorgan analysts anticipating over $8 billion in inflows in the first year.
Still, there are potential reasons why the XRP price may retreat after the ETFs launch. One of them is that the ETF approval has already been priced in. As such, there is a risk that investors will sell the news as they did with Solana, which has retreated after the launch of Bitwise and Grayscale ETFs.
Buying the rumor and selling the news is a familiar concept in which investors buy an asset ahead of an important event and sell it when it happens. A good example of this is when XRP price dropped after the SEC ended its lawsuit against Ripple.
The token will also pull back as whales continue their selling spree. Data shows that these investors have dumped over 90 million tokens in the last 24 hours.
Ripple price forms death cross
Technicals suggest that the XRP price has more downside to go, as it has already formed a death cross pattern on the daily chart. This pattern happens when the 50-day and 200-day Exponential Moving Averages cross each other. It is one of the most common bearish patterns in technical analysis.
Therefore, the token will likely resume the downtrend and hit the psychological point at $2.0.
Source link