- XRP holds near crucial 38.2% Fibonacci support, signaling potential for future gains.
- Brazil’s approval of an XRP ETF could boost institutional demand for the cryptocurrency.
- Dogecoin falls below 61.8% retracement, suggesting a potential end to its recent rally.
The cryptocurrency market volatility has not hindered XRP from trading close to its vital 38.2% Fibonacci retracement point. The strong market rally from November to January pushed XRP to a high of $3.40, which now acts as a key resistance level. The cryptocurrency showed a 25% decrease this month, yet experts view this price level as within the expected corrections of a bullish cycle.
Traders use Fibonacci retracement tools to find price zones that may generate support or resistance that could stop or reverse market movements. XRP remains near the 38.2% Fibonacci retracement level, with traders closely watching the 50% and 61.8% levels for potential support or resistance. According to analysts, XRP’s position above this level suggests that its bullish momentum remains intact, increasing the likelihood of an imminent upward move.
Developments for XRP and Market Impact
The bullish outlook for XRP continues to strengthen, driven by recent regulatory advancements that boost investor confidence. Brazil’s securities regulator has granted initial approval for a spot XRP exchange-traded fund (ETF), paving the way for increased institutional investment and broader crypto adoption in the country. The Hashdex Nasdaq XRP Fund operates in a pre-functional period before receiving its final regulatory clearance.
There is growing speculation that U.S. regulators may consider applications for spot XRP ETFs following the approval of Bitcoin and Ethereum ETFs. If these funds get approved, they could trigger a flood of institutional money into XRP. Regulatory advancements play a crucial role in driving institutional participation in the crypto market.
Related: Brazil Embraces XRP as Braza Bank Introduces BBRL Token
Dogecoin Faces Downturn After Retracement Exceeds Key Level
In contrast to XRP, Dogecoin has witnessed a decline that suggests a potential end to its recent bullish trend. Dogecoin’s price has fallen below $0.21 after surging over 70% since December. It has dropped below the 61.8% Fibonacci retracement level of its recent rally. Dropping below this key Fibonacci level could further fuel bearish sentiment, weakening Dogecoin’s market position compared to assets like XRP.
