$1.30 Target Looms as Traders Flee Positions ⋆ ZyCrypto

The fourth-largest cryptocurrency has witnessed bearish on-chain metrics since XRP has slipped to a 3-month low after dropping below the psychological price of $2.

For instance, according to Coinglass data, XRP‘s open interest has declined by 3.78%, signaling that the altcoin’s market activity is decreasing as traders exit their positions.

As a result, renowned market analyst, Ali Martinez, believes that XRPs situation might be like getting out of the frying pan and into the fire after falling below a head-and-shoulders pattern.

Martinez pointed out,

This analysis shows that XRP risks dropping to the $1.30 zone since a head-and-shoulders pattern depicts a trend reversal.

According to CoinGecko data, XRP was down by 13.4% in the past week to hit $2.13 at the time of writing.

Will an XRP ETF Save the Situation？

With asset management firm Teucrium already setting the XRP exchange-traded fund (ETF) ball rolling, Bloomberg senior analyst Eric Balchunas believes this is a welcome move despite the witnessed bear market.

Trading under the name XXRP, Teucriums XRP ETF has already generated over $5.43 million in turnover.

Balchunas stated,

ETFs are usually deemed game-changers since they trigger heightened institutional interest in an asset, and the same is expected for XRP.

Meanwhile, XRP is eyeing a mega utility explosion, thanks to Ripples acquisition of prime brokerage firm Hidden Road for a whopping $1.25 billion.

This deal is expected to expand Ripples cross-border payment sphere, with XRP expected to take center stage.