The cryptocurrency market has seen a wave of optimism recently, with XRP emerging as one of the top performers despite broader sectoral challenges. After a steep downturn in early February, XRP has rebounded over 15% from its February 6 closing price of $2.32. While most altcoins continue to struggle, XRP’s weekly chart is drawing attention for its bullish momentum and growing institutional interest—particularly around the development of spot ETFs.
This renewed confidence stems largely from regulatory progress: the U.S. Securities and Exchange Commission (SEC) has confirmed multiple new filings for spot XRP exchange-traded funds (ETFs), signaling a potential turning point in the asset's journey toward mainstream financial acceptance.
Growing Momentum Behind Spot XRP ETFs
The latest catalyst for XRP’s rally is the SEC’s acknowledgment of additional spot ETF applications. CoinShares has officially filed through Nasdaq, marking the fourth such submission following earlier proposals by Grayscale, 21Shares, and Bitwise. The regulatory body has also confirmed filings from WisdomTree and Canary Capital, indicating increasing institutional appetite for XRP-based financial products.
These developments suggest that the SEC may be softening its stance on XRP as a non-security—a crucial distinction that could pave the way for broader investment access. Although no approvals have been granted yet, the mere acceptance of these filings represents a significant step forward.
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Internationally, momentum is building as well. Brazil’s securities regulator, Comissão de Valores Mobiliários (CVM), has approved the country’s first spot XRP ETF—Hashdex Nasdaq XRP Index Fund. While trading has not yet commenced, Hashdex has announced that further details will be released soon, potentially setting a precedent for other markets.
Market Reaction and Trading Activity
Despite positive headlines, futures market sentiment remains cautious. Data shows that after XRP’s price dropped 26% during the first week of February, open interest (OI) in futures contracts fell by more than 78% week-on-week. Even though the price has since recovered nearly 20%, nominal OI has only increased by $600 million from a previous drop of nearly $4 billion.
This discrepancy suggests that current price action is being driven by relatively low trading volume or limited participation. In technical terms, this means the market may be vulnerable to manipulation or sudden volatility spikes, as fewer traders are influencing larger price moves.
Analysts warn that while the chart looks promising, low open interest undermines the strength of the rally. A sustainable upward trend will likely require broader participation from institutional and retail traders alike.
Bullish Predictions: Is a $6 “God Candle” Possible?
Amid the growing buzz, some crypto commentators are making bold forecasts. Anonymous trader and analyst Polly predicts that XRP is poised for a massive breakout—what they refer to as a “god candle”—driven by an expected resolution to the long-running SEC vs. Ripple lawsuit by the end of February.
According to Polly, a favorable outcome could send XRP soaring to $6 within just 10 days. While this projection captures attention, it hinges on a major assumption: that both parties will reach a definitive settlement. As of now, neither the SEC nor Ripple has confirmed any resolution, making this scenario speculative.
Still, the anticipation itself is fueling market sentiment. If the case concludes with clarity—especially if it affirms XRP’s status as a non-security—it could trigger a wave of capital inflows from institutions currently on the sidelines.
Key Resistance Levels to Watch
Not all analysts share Polly’s aggressive outlook. Market expert Dom offers a more measured perspective, identifying the $2.50–$2.80 range as a critical resistance zone for XRP. This level aligns with historical volume-weighted average price (VWAP), which has acted as strong overhead resistance in past cycles.
Dom’s analysis of the 6-hour chart highlights that breaking above $2.80 with strong volume is essential before any push toward new all-time highs can be sustained. Without such a breakout, the risk of rejection and consolidation remains high.
Once XRP clears $2.80 and holds above it, the next target would be retesting its current peak near $3.40—or potentially surpassing it if momentum builds. However, until that resistance is decisively overcome, traders should remain cautious about overextending bullish positions.
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Core Keywords Driving Market Interest
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- XRP price prediction
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- SEC vs Ripple lawsuit
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- XRP ETF approval
- Ripple legal case update
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These terms reflect what investors and traders are actively searching for—offering valuable insights into both short-term movements and long-term potential.
Frequently Asked Questions
What does SEC confirmation of ETF filings mean for XRP?
SEC confirmation means the agency has officially accepted the paperwork for review—not that approval has been granted. However, it signals progress and reduces uncertainty, which can boost investor confidence.
Will a spot XRP ETF be approved in 2025?
While nothing is guaranteed, the growing number of filings and international precedents—like Brazil’s approval—suggest chances are improving. A final decision may depend on the outcome of the SEC-Ripple lawsuit.
Why is low open interest a concern for XRP?
Low open interest indicates weak participation in leveraged markets. This can lead to exaggerated price swings and make the market easier to manipulate, reducing overall stability.
What is the significance of the $2.80 resistance level?
$2.80 marks the historical volume-weighted average price (VWAP), where large amounts of buying and selling occurred in prior cycles. Breaking above it confirms stronger demand and opens the door for higher targets.
How could the SEC-Ripple case impact XRP’s price?
A favorable ruling—especially one declaring XRP not a security—would likely unlock institutional investment and ETF approvals, potentially triggering a major price surge.
Is a $6 XRP price realistic?
While possible under extreme bullish conditions (e.g., ETF approval + lawsuit resolution + macro tailwinds), $6 represents more than a 150% increase from current levels and would require sustained momentum and volume support.
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Final Outlook: Cautious Optimism Ahead
XRP stands at a pivotal moment. Regulatory developments—especially around ETF filings—are creating fertile ground for growth. However, technical weaknesses in futures activity and unresolved legal questions remind us that risk remains.
Traders should monitor three key factors closely:
- Progress in the SEC-Ripple litigation
- Volume behind price breaks above $2.80
- Growth in futures open interest signaling real trader engagement
With these elements aligning, XRP could enter a new phase of adoption and valuation. Until then, cautious optimism—and strategic positioning—is advised.
The path forward may not be linear, but for those watching closely, the signals suggest we’re approaching a defining chapter in XRP’s evolution.