The price of Ripple (XRP) has dropped by 2.8% in the last 24 hours, bringing it down to $2.46. This has erased most of the gains made over the weekend.
The decline in XRP’s price follows a general drop in the cryptocurrency market. Bitcoin (BTC) fell by 3.5%, and Ethereum (ETH) dropped by 8.3% in the same period.
One key reason for the drop in XRP and other cryptocurrencies is the strong U.S. dollar. The dollar has reached a two-year high, and strong economic data suggests that the U.S. may delay cutting interest rates. This makes the dollar stronger and puts more pressure on cryptocurrency prices.
Despite the recent drop, there is no immediate cause for concern for XRP. The cryptocurrency had previously broken out of a downward trend.
If the price drops to the trendline and finds support, it could lead to a new rally. If XRP can rise above resistance levels at $2.40 and $2.60, it could reach a new all-time high, which would require a 18% increase in value.
In other news, there is growing hope for an XRP Exchange Traded Fund (ETF). Analyst Nate Geraci predicts that the U.S. Securities and Exchange Commission (SEC) may approve an XRP ETF this year.
Ripple’s president, Monica Long, agrees, stating that an XRP ETF could bring in millions of dollars and help push the price higher. Several companies, including WisdomTree, Bitwise, Canary Capital, and 21Shares, have applied for an XRP ETF.
With a new SEC chairman, Paul Atkins, expected to adopt a pro-crypto stance, the approval of an XRP ETF looks likely.
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