XRP has shown potential for higher price levels with over 7% growth in the last week. However, the asset could lose the critical $3 support as broader market signals suggest a shift in altcoin momentum that could impact price stability.
Bitcoin dominance pressures XRP stability
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According to CoinMarketCap data, XRP is trading at $3.02 as of this writing. The coin slipped from an intraday peak of $3.09 amid weak volume. Trading volume is deep in the red zone by 22.99% at $5.82 billion.
Notably, broader market indicators show that there is a rotation of capital to Bitcoin as the asset gains dominance. The flagship coin’s dominance has risen to 58.37%, reducing the momentum of altcoins, including XRP.
With market participants directing funds to Bitcoin as its price aims for $124,000, XRP could lose the $3 support. XRP has already lost 1.9% of its value following the capital rotation, and if it lingers, the support could give way.
Meanwhile, the regulatory delays surrounding some XRP exchange-traded fund (ETF) applications are sending mixed signals in the crypto market. The U.S. Securities and Exchange Commission (SEC) has incoming deadlines for several XRP ETFs. This includes Grayscale’s XRP ETF set for review on Oct. 18, while those of 21Shares have been scheduled for Oct. 19.
Other applications, such as those of Canary Capital and WisdomTree, are all in October. It is unclear if the ongoing U.S. government shutdown will cause a shift in dates. Such a development could negatively impact the asset’s price outlook due to investors pulling back.
Bullish predictions and institutional adoption of XRP
Despite these uncertainties around XRP, a new price prediction has emerged that could see the coin soar to $5. Cold Blooded Shiller, a trader on X, has predicted a 64% price spike if XRP clears the $3.30 resistance level. The analyst insists that the coin could hit $5 in a bullish scenario.
Although Shiller’s prediction might appear unbelievable, recent developments suggest it is possible. As U.Today reported, Martin Hiesboeck, Uphold’s head of Research, has highlighted the resultant impact the XRP Ledger Multi-Purpose Token could have on XRP.
Hiesboeck maintained that the institutional adoption could make XRP an actual financial utility coin, signaling increased demand for the asset. Such a development might serve as a bullish catalyst for the predictions on XRP.
