• XRP falls below $3 as ETF delays and weak institutional flows continue to pressure market sentiment
• Grayscale Bitwise and 21Shares push XRP ETF filings, boosting hopes for potential US approval in 2025
• Analyst Ali notes XRP must defend $2.70, reclaim $2.90, and aim for $3.70 to keep recovery prospects alive

XRP dipped below the $3 level this week and is placing pressure on holders. Slowed sentiment as institutional flows remain weak and ETF approvals continue to be delayed. There is strong issuing pressure out of the spot exchanges, according to analysts. However, experts believe the ETF speculation, along with the general market structure, could control a long-term bullish narrative for the token.

XRP’s decline arrives after multiple issuers of major cryptos filed one or more updates to securities and exchange commission statements. Grayscale, Bitwise, Canary, and 21Shares all pushed for spot XRP ETF applications. 

Also Read: XRP Whale Activity Signals Potential Break Above $3.20 Resistance

The trend of updates indicates an increasing attention to institutional solutions relating to the token. However, unlike in the preferred stock situation, there are no clear endorsements for the market by the regulators, meaning investors are rightly averse in the short term.

Nate Geraci Sees Undervalued Demand for Altcoin ETFs

ETF expert Nate Geraci likened current sentiment to earlier such pessimism concerning Bitcoin and Ethereum ETFs: he asserted that there is still undervalued demand for any cryptocurrency-based asset, including XRP and Solana. Geraci wrote that the concurrent submissions were “highly noteworthy” and that they provided a positive signal toward ultimate approval.

Prediction markets support this optimism. Based on current odds, XRP has an 86% chance of being approved as an ETF in 2025. That expectation speaks to the potential of an investor to see long-term supply play out, despite continued challenges in near-term trading. Market players continue to strike between the uncertainty of regulations and increasing interest of institutions.

XRP Recovery Roadmap Hinges on $2.70 and $2.90 levels

A further complicating factor is that of technical charts. EGRAG Crypto identified the Bull Market Support Band as the most important structure to watch. Tier 1 support is $2.66, and Tier 2 is $2.55. A pullback below $2.30 would end the current impulsive move and indicate further declines. Traders see this level as a dangerous line in the sand.

Despite the potential lack of confidence in the short term, EGRAG emphasized that the higher momentum curve is still generally bullish. If there is no breakdown in XRP, the structure looks like a potential long-term growth option ahead. A confirmed breakout could target as high as $27, though analysts caution that a move in that direction will have to pass through several resistance levels to succeed.

Market Analyst Ali predicted a shorter path toward recovery. He noted the importance of starting with the need to defend 2.70 and recover 2.90. If those levels are maintained, then XRP could head to $3.70. The step-by-step roadmap helps traders to keep track through the coming weeks.

On-chain data highlights the caution notes. At the same time, spot exchanges had recorded $22.6 million of outflows on September 1. The heavy outflows are indicative of double-edged swords where holders are fenced against sharp upside rallies. Large withdrawals like this one tend to drag out recovery and limit near-term acceleration.

These headwinds illustrate the rift between the near-term imperatives and the far-term aspirations. Although the outcomes of ETF approvals are uncertain, the number of filings indicates confidence on the part of ETF issuers in their chances of approval. For now XRP needs to stabilize above important support levels before bullishness can resume.

Also Read: XRP Weekly Outlook: Support Strong at $2.67, Breakout Levels in Focus