XRP Price Dip May Be Short-Lived — Here’s Why Traders Should Stay Alert
XRP's recent pullback has investors buzzing—is this a temporary stumble or the start of a deeper slide?
Bullish signals clash with market risks as analysts debate the token's next move.
Meanwhile, Wall Street 'experts' still can't decide if crypto is a revolution or a Ponzi scheme. Some things never change.
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Looking at XRP’s situation, investor Andri Fauzan Adziima says technical analysis “points to a short-term bearish sentiment,” although Adziima believes developments around the Ripple ecosystem mean its long-term prospects remain sound.
Similar to Bitcoin and other early cryptocurrencies, Ripple started out as a digital currency aimed at enabling faster global transactions with minimal fees. Over time, however, it has grown into a much larger and more influential ecosystem. It has launched stablecoin Ripple USD (RLUSD), with reserves held by BNY (The Bank of New York Mellon Corporation), expanded into spot brokerage through a $1.25 billion acquisition (Hidden Road), and is eyeing spot XRP ETFs, among other initiatives.
The spot ETFs, in particular, could prove to be a meaningful catalyst. On Tuesday, Franklin Templeton removed the delaying language from its ETF filing, indicating the launch could occur soon. Nate Geraci, president of ETF Store, also expressed optimism, noting he expects Spot XRP ETFs to be available within the next two weeks, with November 13 as a “tentative date.”
Meanwhile, Ripple recently secured a $500 million strategic investment in a round led by Fortress and Citadel Securities, placing a $40 billion valuation on the digital infrastructure firm for worldwide settlements. Other participants in the round include Pantera Capital, Galaxy Digital, Brevan Howard, and Marshall Wace. The company is also increasing the value of XRP through buybacks, having already purchased 25% of the tokens in circulation.
In addition, Ripple is venturing into the digital asset treasury (DAT) arena, a segment popularized by MicroStrategy’s Michael Saylor. According to Bloomberg, Ripple Labs is exploring a $1 billion SPAC deal to establish a publicly traded entity dedicated to acquiring XRP tokens. “If completed,” Adziima observes, “the raise will be the biggest one yet, for a DAT focused on XRP, and one of the biggest in the sector overall.”
So, with all this to play out, Adziima thinks the retreat could offer an opportunity for investors, although not one that is risk-free.
“With all the buzz around Ripple, XRP’s recent pullback could yet prove to be temporary,” the investor summed up. “However, the overall crypto market risk is still a significant factor in the equation, and therefore, cannot be ignored.”
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