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๏ปฟAnjali Belgaumkar
๏ปฟAnjali Belgaumkar
Author
Writer by choice, CryptoCurrency Writer, and Researcher by chance. Currently, focusing on financial news and analysis, as well as cryptocurrency news and data. One may not call me a crypto โEnthusiastโ but trust me I'm getting there.
- Feb 11, 2025 15:21 UTC
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XRP Trails in Altcoin ETF Race, Hype Fades: Analyst Warns ‘Volatility Ahead’
XRP's short-term traders face -13% returns, signaling a potential buy opportunity at lower levels.
Long-term XRP holders see 55% average gains, but profit-taking may bring market volatility.
Bloomberg ETF analysts Eric Balchunas and James Seyffart have shared their updated approval odds for spot altcoin ETFs in 2025, with XRP having the lowest chance. The US SEC recently recognized Litecoinโs ETF filing, improving its approval prospects. Amid these developments, XRP’s price has remained steady and is aiming to break the $3 mark again.
On the Thinking Crypto podcast, Brian from Santiment recently shared details into the performance of XRP, explaining that its utility is supported by strong on-chain metrics. While there was a significant surge at the beginning of the month, XRP’s performance has since come back down to more neutral levels.ย
This is typical after periods of high volatility, such as the price spikes during Trump’s election and the rise in mid-January. Transaction volumes, active addresses, and circulation have all returned to a more stable state, indicating that the initial hype around XRP has died down.
Buying Opportunity Amid Volatility
For those looking at shorter-term investment opportunities, thereโs potential to enter XRP at a favorable moment. Recent market dips have led to negative returns for shorter-term traders, with a -13% return for wallets active in the past 30 days.
This could be seen as an opportunity to buy into XRP at a historically low point, especially as prices have dropped compared to where traders were in profit earlier. The key is to understand market sentimentโbuy low in relation to other traders’ losses, and sell high when others are in profit.
However, Brian flags a potential concern for long-term holders of XRP. Any address thatโs been active in the past year is up 55% on average, which shows significant gains have already been realized by many investors. For those planning to hold XRP for several months or longer, the market could experience some volatility as it may face pressure from already realized profits.
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