Why Does XRP Price Fail to Rally?

This past week, the XRP price had a chance for a major breakout. On Tuesday, the price reached $0.53 before dropping almost 6% on Oct. 31.

A moderate rebound on Friday did not help the bulls much. At press time, the XRP price is still in decline mode, trading at $0.51.

Source: CoinMarketCap

21Shares files for XRP ETF

On Friday, XRP saw a rebound as 21Shares, a major ETF issuer, filed with the U.S. SEC to launch an XRP exchange-traded fund (ETF).

If approved, the "21Shares Core XRP Trust" would be listed on the Cboe BZX Exchange, offering investors a potentially more cost-effective way to gain exposure to XRP without directly buying the token.

In its filing, 21Shares emphasized that XRP is not classified as a security.

According to 21Shares, the ETF product is supposed to provide shareholders with a more "cost-efficient way" for investors to get exposure to XRP compared to purchasing and holding the XRP-affiliated token directly.  Notably, the filing has stressed that XRP is not a security.

As reported by U.Today, the SEC recently confirmed that it was not going to challenge the legal status of the controversial token during the ongoing appeal process in the Ripple case.

XRP price prediction

XRP is currently hovering around a crucial support level at $0.51, which has the potential to either stabilize or accelerate its decline.

Recent trading data suggests that this support level is critical in maintaining XRP's price trajectory, especially as it has been one of the top 10 worst-performing crypto assets over the past months.

The candlestick pattern emerging at this level hints at a possible reversal, often viewed as a bullish sign.

If buying volume increases, this pattern could signal that XRP may experience upward movement after a challenging period. However, the market sentiment remains largely bearish, and with selling pressure still prevailing, there is a risk of the support level failing.

In the coming days, a shift in trading volume toward buyers would be essential to counteract the prevailing downward momentum. Should this shift occur, XRP could gain the support needed for recovery; if not, the asset might face further declines.