NEW DELHI (CoinChapter.com) — Renewed euphoria over Ripple (XRP) ETF launching soon failed to help the token’s price action as bulls struggled to keep XRP above the $0.56 price tag.

XRP prices are down by nearly 8% YTD in 2024, with the token’s New Year excitement-fueled rally ending on Jan. 3 following the Bitcoin-led flash crash. Bulls tried to stage a recovery, hoping to ride the spot BTC ETF approval hype.

However, the sell-the-news crowd forced BTC prices to plunge, with altcoins following suit. As a result, the recovery rally broke down on Jan. 12.

Ripple CEO Fuels Speculation Of An XRP ETF

In an interview with Arjun Kharpal of CNBC  at the World Economic Forum in Davos, Switzerland, Ripple CEO Brad Garlinghouse stated that SEC chair Gary Gensler is a “political liability” for the US. Moreover, Garlinghouse labeled Gensler’s persecution of crypto assets as “insanity.”

One of the definitions of insanity is doing the same things over and over again and expecting a different outcome. I think Gary Gensler is doing the same and same thing over and over again and somehow thinks that he is going to win in the courts

Gensler said in the interview.

Furthermore, the Ripple CEO stated that Gensler’s actions were not good for the long-term health of the US economy. However, the most interesting part of the interview was Garlinghouse subtly hinting at the possibility of an XRP ETF, putting a fan to the embers of Ripple bulls’ speculations.

Kharpal highlighted that following the spot BTC ETF approval, ETH prices rallied on speculation of an ETH ETF. The reporter then asked Garlinghouse what the chances of an Ether ETF, to which the Ripple founder said it was a certainty are. Kharpal then prodded Garlinghouse about the chances of an XRP ETF.

Interestingly, the Ripple boss refused to explicitly state if and when the SEC would approve an XRP ETF.

However, that did not stop the rumor machine from going into high gear, with several XRP supporters taking to social media to celebrate what they believed was Garlinghouse predicting an XRP ETF. Yet, Ripple bulls could not capitalize on the hype.

Garlinghouse also revealed that Ripple put its IPO plans on hold for now, despite exploring markets outside the US to avoid a “hostile regulator.”

XRP Price Continues Crabbing

Ripple bulls struggled to capitalize on the hype from Garlinghouse’s statement due to the bearish pressure against XRP prices. The token fell nearly 3% to a daily low near $0.56 before recovering some ground later in the day.

If the XRP ETF hype fails to attract Ripple bulls to the market, XRP could breach the support near $0.54 before testing the support near $0.5.

Yet, speculations often become the strongest bullish cue for a digital asset. As such, the XRP ETF euphoria might attract buyers to the market, helping the token reach the 50-day EMA (purple wave) resistance near $0.6.

Flipping the immediate resistance could see the XRP price target the resistance near $0.64 before correcting.

The RSI for XRP remained neutral, with a score of 41.75 on the daily chart.

The post XRP ETF Euphoria is No Longer Pumping Prices appeared first on CoinChapter.

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Filed under: Bitcoin - @ January 18, 2024 6:25 am