Are ETFs the key to a rally?

XRP could be in for a major shake-up this year thanks to a wave of new ETFs hitting the market. Bitwise, Franklin Templeton, and other investment companies are gearing up to launch theirs soon, and Franklin Templeton’s ETF alone is projected to bring in $150-$250 million on the first day. Naturally, everyone’s wondering whether this level of demand can finally turn XRP’s weak price action around.

Right now, the XRP price is down over 15% this week, trading around $2.11 and sitting just above a critical support area. Below, we take a look at what’s happening in the market, key chart levels, and our short-term XRP price prediction.

Current market scenario: XRP holds above key $2 support

This week, Ripple (XRP) is likely to trade between $2.10 and $2.30, showing continued volatility. Even with ETF news and ongoing XRP Ledger updates, the bears are still calling the shots, with momentum and volume pointing in their favor.

Institutional interest, though,  is heating up. The Canary Capital Spot XRP ETF brought in over $58 million on day one, and with Franklin Templeton, Bitwise, 21Shares, and Grayscale preparing their own ETFs, XRP could be nearing a major milestone in traditional finance adoption.

Upside outlook: What XRP needs for a bullish breakout

Even after its recent drop, XRP still has a chance to bounce back — but it needs to get past a couple of key resistance levels first. $2.20 is the first big hurdle, and a move above it would show bulls are coming back. After that, $2.30 is the next test, and clearing it could push XRP up to $2.60, which might finally turn sentiment bullish.

Investors are curious to see if the upcoming ETFs will create enough momentum to push XRP higher. With Ledger upgrades continuing and institutional interest on the rise, the short-term XRP forecast remains cautiously upbeat.

Downside risks: What happens if XRP loses $2.10

On the downside, XRP looks vulnerable. Falling below $2.10 would likely signal more weakness, with the next key level around $2.00. Beyond that, there isn’t much technical support, so the price could slip further.

With sellers holding the upper hand, the market is more likely to keep trending lower unless a surge in buying comes in to change momentum.

XRP price prediction based on current levels

The market is closely watching XRP as it tests key technical levels this week.

• A decisive move above $2.20 and $2.30 could push XRP toward $2.60, hinting at a bullish reversal.
• Conversely, falling below $2.10 would likely open the door to $2.00 or lower, maintaining the downward trend.

The short-term trend is still leaning bearish, unless XRP ETFs push enough buying power to spark a breakout. These institutional moves could be a game-changer, but XRP needs to get back above key resistance levels to shake off the bearish pressure and start a lasting upward move.