November has seen one of the worst performances for crypto markets in recent years, with almost all major crypto assets experiencing double-digit losses. Amidst this turbulent environment, Ripple 
$1‘s XRP token also came under significant selling pressure. Despite the launch of two exchange-traded funds (ETFs) monitoring the asset’s performance in the US, a usually positive development, no similar price positivity was observed. In the past week alone, XRP fell by over 15%, and after dropping below the $1.90 mark yesterday, it is currently trading around $1.95. Since its all-time high in July, the token has retreated by approximately 50%.
Technical Data Suggests Buying Signal for XRP
However, on-chain data shared by analyst Ali Martinez indicates that a short-term relief rally might be on the horizon for XRP. The TD Sequential indicator, which detects market exhaustion and potential reversal points, has issued a “buy” signal for XRP following its recent declines. The last two times this pattern appeared, XRP saw increases of 14% and 18%, respectively. Should a similar recovery occur, XRP might climb back into the $2.20 – $2.30 range. Consequently, many investors are debating whether the current levels offer an opportunity despite the downside risks.
Rapid Expansion of XRP ETFs: Third Approval Secured
Another positive development for XRP is the approval of a third spot XRP ETF in the US. According to Bloomberg analysts, Grayscale’s XRP Trust product will be converted into an ETF format in 2024. Thus, within just two weeks, a third XRP ETF will commence trading in the US. While the introduction of the first two ETFs had a classic “sell the news” effect on prices, experts claim that the growing product diversity sets a robust foundation for XRP in the long term. The emphasis is on the potential rise of institutional interest if high trading volumes and strong net inflows continue.
Meanwhile, the ETF activity regarding XRP reflects increasing institutional demand, paralleling other market developments. Recently, the surge in ETF applications for Solana 
$74 (SOL) highlighted large funds’ interest in alternative assets. The acceleration of the Solana ETF process is believed to signal ongoing institutional capital flow within the sector. Experts argue that a similar process for XRP could have a more pronounced impact on prices.
Overall, despite the severe declines XRP has faced in recent months, technical indicators and progress on the ETF front display its potential for recovery. However, the persistent market volatility necessitates cautious investor behavior. Therefore, it is crucial to closely monitor macro developments that could exert pressure alongside potential upward scenarios.
