XRP has been unable to break past the $2.5 resistance level for over a week. Despite gaining momentum in early February, the cryptocurrency saw a sharp drop from $3 to $2.1 on February 3, following a broader market crash. Since then, XRP has struggled to regain strength, with a brief spike to $2.7 on February 4 before falling back to $2.2.

Currently, XRP is trading at $2.38, failing to establish a clear breakout. While investors remain optimistic, the lack of sustained momentum raises concerns about a potential further drop to $2, its recent support level.

ETF Approval Could Be a Game-Changer

The U.S. Securities and Exchange Commission (SEC) is expected to respond to Grayscale Investments‘ application to convert its XRP Trust into a spot ETF by February 13. If approved, this move could open doors for institutional investment, potentially driving XRP’s price higher.

Grayscale’s XRP Trust currently manages around $16.1 million in assets. If converted into an ETF, it would allow investors to gain exposure to XRP through traditional stock markets without the complexities of owning the cryptocurrency directly.

Analysts Predict XRP Surge with ETF Approval

Market analysts and AI tools like ChatGPT have speculated that an XRP ETF could push prices between $10 and $50. Some analysts even forecast a surge beyond $30 if institutional demand increases.

Additionally, Polymarket bettors estimate an 81% probability that the SEC will approve a spot XRP ETF this year. However, the outcome of Ripple’s legal battle with the SEC remains a crucial factor in determining XRP’s future price action.

What’s Next for XRP?

While XRP investors are eagerly awaiting the ETF decision, the short-term outlook remains uncertain. If the price fails to break $2.5, it could face another dip to $2. However, a confirmed ETF approval could trigger a bullish breakout, potentially pushing XRP towards $5 and beyond.

With the SEC’s decision looming, all eyes are on February 13 to see if XRP can finally gain the momentum needed to break past its resistance level.