XRP price struggles at $2 resistance as new ETF launch fuels investor optimism
XRP ETF launches as price struggles near $2 level.
XRP has seen mixed price action recently, rebounding from a five-month low at $1.62 before hitting resistance at the $2 level. Despite the recovery, XRP's price action suggests more downside potential, but a new development in the form of an XRP-based ETF could provide a boost for the token. Investors and traders are watching closely as a leveraged exchange-traded fund (ETF) linked to XRP launches on the NYSE Arca on April 8.
Teucrium Investment Advisors, an alternative asset manager, will launch the Teucrium 2x Long Daily XRP ETF under the ticker XXRP. Sal Gilbertie, Teucrium's CEO, noted that investor interest in crypto ETFs, especially XRP, has been strong. Despite a broader market downturn linked to recent geopolitical tensions and U.S. tariffs, Gilbertie highlighted that launching a product during a price dip could offer a unique opportunity.
The launch of the ETF aligns with a key development in the broader crypto market. The introduction of such a product could stimulate additional interest in XRP, potentially resulting in further upward price movement. This kind of institutional product often generates demand from a broader investor base, and the 2x leveraged nature of the ETF could amplify any positive market moves for XRP.
XRP technical outlook weakens as RSI remains in bearish territory
XRP price dynamics (Jan - April 2025). Source: Tradingview
On the technical side, XRP's price is currently facing resistance at the $2 level, which capped the recent recovery. As of Tuesday, April 8, XRP is trading at $1.87, experiencing a minor 2% loss in the European session. The daily RSI is still in bearish territory, though not yet oversold, indicating room for further downside. The 4-hour RSI, which had recovered from oversold conditions, remains in bearish territory, confirming ongoing weakness in price action.
Despite the ETF launch potentially supporting a price recovery, XRP's technical outlook suggests that a test of the next support level at $1.79 is likely. If the price fails to hold, further downside could ensue. Until XRP breaks back above $2, resistance will remain a significant hurdle for sustained upward momentum. Traders will need to monitor both market sentiment and technical indicators closely to gauge the effectiveness of the ETF launch in driving longer-term recovery.
XRP's price fell 17%, catching bullish traders off guard after breaking key support levels. The drop followed tariff-related comments from President Trump.
