As the Asian market started its week, Ripple-backed digital asset XRP struggled with near-term bearish sentiment. The passage of the weekend and the opening of the Asian market on Monday saw XRP trading around 63 cents. This marked a continuation of the recent price trend.
Notably, XRP price closed out last week with a Doji candlestick pattern, a sign of market uncertainty.
Is the SEC dampening the bullish spirit?
The bullish sentiment that was building appears to have been dented by recent events. The U.S. Securities and Exchange Commission (SEC) has appealed a ruling by Judge Analisa Torres last month. This appeal has played a vital role in reducing the previously brisk enthusiasm among XRP investors.
XRP price action
Aside from Bitcoin, XRP stands out as the only digital asset to receive clear regulatory approvals in the United States. This distinctive position has led Cheeky Crypto analyst Nick to speculate on the possible emergence of an XRP Exchange-Traded Fund (ETF). According to Nick, an XRP ETF could be on the horizon. In addition, XRP consistently outperforms the Ethereum network in terms of daily trades.
Read more: XRP is not a security even when sold to institutional investors: Ripple CTO
In addition, it has witnessed increasing adoption by large-scale investors known as whales. The expected approval of an XRP ETF could prove to be a catalyst for a substantial bullish rebound, potentially surpassing the previous all-time high (ATH) value.
On a daily time frame, the analytical perspective suggests that XRP price is on the cusp of a bullish rebound, possibly heading towards the 70 cent mark. After a significant breakout observed last month, the Cheeky Crypto analyst expected an ABC correction, which would push the price towards the supply zone around 54 cents.
Despite this, the analyst also suggested that the bears could exert further pressure, possibly targeting the ensuing support zone at around 48 cents.
What lies ahead?
Nick’s analysis extends to the weekly time frame where he predicts a range for XRP’s future trading value. He suggests that during the upcoming major crypto bull market, the price of XRP could fluctuate between $5.4 and $11. This prediction also comes with a dose of realism.
Related: Ripple News: XRP Price Sheets Golden Cross: Is ATH On Charts?
Nick warns traders not to expect the price of XRP to rise excessively, such as reaching $589 or $10k, during the next major crypto bull rally. This caution stems from an understanding of diminishing returns within market dynamics.