It briefly dipped below $2 during a market correction on February 3.
While bulls have regained control, the price remains in the red on a weekly basis, currently trading at $2.44, according to CoinGecko data.
But amid the bearish environment, there are signs that Ripple could be poised for a major rally.
On February 6, CBOE BZX filed a 19b-4 filing on behalf of Canary Capital, WisdomTree, 21Shares, and Bitwise, seeking to list the first XRP ETF in the United States.
The filings represent a formal application to the U.S. Securities and Exchange Commission (SEC), which must make a decision within 240 days.
Approval of the application could provide U.S. investors with a new way to access XRP, potentially creating buying pressure that could push the price higher.
Whale activity is another factor worth watching, with crypto analyst Ali Martinez revealing that major investors seized 520 million XRP, or over $1.2 billion at current prices, during the recent dip.
The reduction in circulating supply could pave the way for a price rally, especially if demand continues or increases.
Technically, the Relative Strength Index (RSI), which measures the speed and volatility of price movements, signals a potential rebound.
When the RSI drops below 30, it signals oversold conditions and a potential bounce.
Earlier in the week, the RSI dropped to 35, which is close to bullish buy territory.
On the political front, Donald Trump’s second term has begun amidst an increased focus on cryptocurrencies, with reports that he is planning to create a cryptocurrency advisory board.
Ripple CEO Brad Garlinghouse may be one of the members of this board, as he has a close relationship with Trump, following a previous meeting between the two.
