Ripple's Rise: Steady climbing XRP and the Potential of ETF Approval
Could a surge in XRP price to $5 be possible following SEC's endorsement of Ripple-related ETFs?
Ripple's digital token, XRP, has been steadily climbing this week, reaching heights not seen in over a month. The coin, currently trading at $2.27, holds a market cap of $136 billion, solidifying its position as the fourth-largest cryptocurrency by market value.
Several factors could contribute to XRP's price surge this year. Its expanding role in the financial services sector, as well as the potential approval of exchange-traded funds, are major players. Brad Garlinghouse, the CEO of Ripple Labs, has announced the company's intention to aggressively expand its banking partnerships post the conclusion of the SEC case. The aim is to challenge SWIFT's long-standing dominance in the global payments system.
Another significant factor is the potentially upcoming approval of spot-based XRP ETFs. Companies like Bitwise, 21Shares, Franklin Templeton, and WisdomTree have already submitted applications to the SEC. The agency has already given the green light to futures-based XRP ETFs by ProShares and Teucrium, increasing the likelihood of spot-based funds following suit.
According to Polymarket data, the odds of Ripple ETF approvals have risen to a whopping 78%. JPMorgan analysts predict that these funds would attract over $8 billion in inflows in the first year, which could possibly surpass Ethereum's net inflows of only $2.5 billion. The recently launched Teucrium 2x Long Daily XRP ETF has already attracted over $54 million in assets in less than a month.
XRP Technical Analysis: Can it Reach $5?
The daily chart indicates that XRP has recovered significantly in recent weeks, surging from a low of $1.60 early this month to a current level of $2.355. The coin has broken above the upper side of a falling wedge pattern, often a bullish reversal signal.
The Relative Strength Index has continued to climb and recently crossed above the neutral 50 level, signaling a strengthening momentum. Moreover, XRP is now trading above both the 50-day and 100-day moving averages, reinforcing the bullish outlook.
Given these signs, the coin is likely to continue its upward trajectory. Bulls are targeting the psychological resistance level at $3. A move above this level would invalidate the head-and-shoulders pattern as highlighted in the chart. If XRP can surpass its year-to-date high of $3.40 following potential ETF approvals, a rally towards the next major psychological target at $5 could occur.
In summary, the Ripple's digital token, XRP, is on a steady climb this week, thanks to its expanding role in the financial services sector and the potential approval of spot-based XRP ETFs. The bullish outlook is further reinforced by the coin's technical analysis, which indicates that XRP could potentially reach $5 in the near future.
- Ripple's digital token, XRP, has reached a high not seen in over a month, currently trading at $2.27 and holding a market cap of $136 billion.
- The potential approval of exchange-traded funds (ETFs) for XRP is a major factor contributing to its price surge this year.
- Companies such as Bitwise, 21Shares, Franklin Templeton, and WisdomTree have already submitted applications for XRP ETFs to the SEC.
- Analysts predict that if approved, these XRP ETFs could attract over $8 billion in inflows in the first year, surpassing Ethereum's net inflows.
- The daily chart indicates that XRP has broken above the upper side of a falling wedge pattern, a bullish reversal signal, and is currently trading above both the 50-day and 100-day moving averages.
- The Relative Strength Index has continued to climb and recently crossed above the neutral 50 level, signaling a strengthening momentum for XRP.
- Given these signs, analysts believe that XRP is likely to continue its upward trajectory, potentially reaching the psychological resistance level at $3, and if successful, could rally towards the next major psychological target at $5.
