XRP continues to show resilience amid fluctuative market conditions, driven by growing institutional interest and important ETF filings, even as analysts express cautions based on on-chain data trends.
On March 12, 2025, XRP, the cryptocurrency associated with Ripple, was reported at $2.17, marking a 3.1% increase within the last 24 hours. This uptick occurred alongside notable movements across the broader crypto market – Bitcoin registered at $81,558 (+1.7%) and Ethereum at $1,860 (-0.8%). Positive momentum for XRP was largely linked to recent developments surrounding exchange-traded funds (ETFs) and the ripple effect they have on its value.
Deribit, a cryptocurrency options exchange, highlighted the constructive influence of ETF filings on XRP’s price. Notably, on the same day, Franklin Templeton, a $1.5 trillion asset manager, announced it had filed for a Franklin XRP ETF, which aims to track XRP’s spot price minus fees, with Coinbase serving as the custodian. Trading of the ETF is expected to occur on the Cboe BZX Exchange. ETF Store President Nate Geraci underlined this significant filing on social media, enhancing visibility among investors.
The preliminary filing is subject to scrutiny, with 240 days allotted for approval or denial by regulatory authorities. Meanwhile, other ETF competitors such as Bitwise, 21Shares, WisdomTree, and Canary Capital are also vying for market entry, raising the stakes and excitement surrounding XRP.
Despite the recent upward movement, the market is cautiously observing potential changes, with analyst Ali Martinez from X asserting caution. Martinez remarked on the state of XRP’s Market Value to Realized Value (MVRV) Ratio, which indicated it had dropped below its 200-day moving average recently. This MVRV crossover suggests potential macroeconomic shifts for the cryptocurrency, signaling investor sentiment may be reaching a threshold of concern.
The MVRV ratio measures the ratio between market cap and realized cap, offering insight on profit-loss status for holders. A ratio above 1 suggests more investors are holding tokens above their purchase price, hinting at profitable positions. Currently, the MVRV remains above 1, indicating the majority of XRP holders remain profitable overall. Nevertheless, the recent drop could imply caution is warranted as the indicator dipped below its 200-day moving average for the first time since late 2024.
Trader sentiments surrounding XRP fluctuate as well. Crypto trader Johnny is hopeful for what he terms a 'relief bounce,' expressing optimism about impending price recoveries. On the other hand, Mikybull Crypto believes XRP shows one of the strongest charts and anticipates it could “run massively” as broader market conditions improve. Ali Martinez, cautioning against complacency, advised, “XRP must hold $2 to avoid a head-and-shoulders breakdown,” asserting any slip below this threshold could indicate serious bearish trends.
According to recent data from Coinglass, XRP's long liquidations hit $2.75 million at multi-week lows, reflecting market volatility and investor anxiety. This metric captures the substantial liquidation occurring during recent downturns, emphasizing the need for strategic positions as the market continues to evolve.
With XRP currently positioned around $2.23, having seen over 5% gains over the last week, market players are closely monitoring dynamics as many await regulatory decisions around the new ETF filings and subsequent impacts on market behavior.
Overall, with the combination of institutional interests, regulatory movements, and shifting sentiments reflected through the MVRV ratio, XRP’s future remains uncertain but strategically pivotal for both retail and institutional investors.