XRP Price Alert: Watch These Key Levels as Analyst Predicts Potential $1.25 Drop

Ripple (XRP)

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The cryptocurrency market kicked off the week with a surge of positive momentum, fueled by significant Bitcoin gains and a landmark regulatory development for XRP. Bitcoin (BTC) experienced a notable rally, climbing over 7% to breach the $95,100 mark early Sunday. This upward trajectory followed statements from U.S. President Donald Trump indicating a potential rollback of tariffs on Chinese imports, injecting optimism into broader financial markets, including crypto. Furthermore, substantial inflows of $3.06 billion into U.S. spot Bitcoin ETFs over the past week underscored strong institutional interest in the leading cryptocurrency.

XRP Futures ETF Gets Green Light, Igniting Altcoin Gains

The positive sentiment extended beyond Bitcoin, with several altcoins also registering gains. XRP, Solana (SOL), and Cardano (ADA) saw increases of 4%, 1%, and 2% respectively over the last 24 hours. Notably, XRP is in the spotlight following the U.S. Securities and Exchange Commission’s (SEC) quiet approval of ProShares‘ inaugural XRP futures exchange-traded fund (ETF). This marks a significant milestone for XRP, paving the way for increased institutional access. ProShares is reportedly gearing up to launch three XRP-tracked products this week, capitalizing on the favorable regulatory landscape. This flurry of XRP ETF activity comes on the heels of Ripple’s significant legal victory against the SEC in March, which cleared considerable regulatory hurdles for the digital asset.

Analyst Signals Short-Term XRP Caution Despite Bullish Long-Term Outlook

Despite the positive ETF news, analysts are offering varied perspectives on XRP’s immediate price action. Egrag Crypto, a prominent analyst, recently cautioned in an X post that XRP could potentially dip to $1.25 in the short term. He emphasized that XRP needs to decisively close above the $2.33–$2.45 range to confirm a bullish breakout. Egrag highlighted the significance of the 0.702 Fibonacci level as a historical indicator of major breakouts.

He advised his followers to adopt a strategic approach, advocating for accumulation during price dips rather than chasing fleeting gains or succumbing to panic selling. While acknowledging the potential for double-digit XRP prices in the coming months, Egrag stressed the need to overcome current bearish sentiments first. Fellow analyst Dark Defender echoed the importance of the $2.222 level as a crucial point for XRP’s price movement, suggesting that its Monthly Wave 4 in Elliott Wave analysis is nearing its conclusion.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Also Read: SEC Approves ProShares XRP Futures ETFs as Ripple Moves Closer to Legal Resolution