- XRP price is on a four-day winning streak, and investors are counting on ETF approvals for renewed propulsion. We discuss what this means.
XRP price has been signaling a potential reversal, registering four successive daily gains after previously forming two double-bottom patterns. As of this writing, XRPUSD trades at $2.88, up by 0.91% on the daily chart. The coin’s trading volume rose by 39% in the last 24 hours, affirming a bullish outlook for its near-term performance. As October approaches, much attention is shifting to the Securities and Exchange Commission (SEC), primarily in relation to ETF approvals.
With the deadline for multiple SEC spot ETF decisions just around the corner, October has the potential to be a monumental month for XRP. Between October 18 and 25, the SEC will decide on six spot XRP ETF applications from Grayscale, 21Shares, Bitwise, WisdomTree, Canary Capital, and CoinShares.
If any or all of them gets the green light, XRP would be the third cryptocurrency to have a spot ETF listed in the U.S., after Bitcoin and Ethereum. However, a key weakness for XRP is that it doesn’t have mining or staking like BTC or ETH. Its full supply was made when it was first released. This distinctive structure creates a liquidity challenge and raises the risk of volatility in prices.
Meanwhile, Cyber Hornet recently filed for an XRP-based ETF and it has generated concerns that a small group of whale holders own most of XRP’s supply. Some investors are concerned that this could lead to market volatility or even price manipulation.
Even though XRP has been moving sideways lately, both large investors and minor investors are evidently still quite interested in it. The coin’s daily trading volume has stayed above $3.5 trillion for the past month, which means that the market is still active.
XRP Price Outlook
The XRP price outlook is still neutral, even though it has been caught in a falling triangle since July, with lower highs and a stable floor near $2.70. The price momentum has slowed down around the 50-day MA at $2.95, and strong upper shadows signal that sellers are protecting the area. After bouncing off of support at $2.74, the currency seems to be gathering strength. If the uptrend keeps up, the next target levels will likely be between $2.95 and $3.10.
XRPUSD on daily chart
Ripple’s continued acceptance by institutions and recent court wins have given traders hope, but selling pressure remains as traders take profits during market pullbacks. In the short term, XRP price performance will likely be hinged on Bitcoin’s performance and how much liquidity there is in general. If prices stay above resistance, there could be opportunity for them to go up. If they don’t hold support, they could go down.
XRP price is rising because investors are realigning themselves in anticipation of SEC approval for multiple spot ETF applications in August.
As seen in the gains registered by Bitcoin and Ethereum after their spot ETF approvals, ETFs attract high increased institutional investment which raises demand and provides stable price support.
Securities and Exchange Commission (SEC) has a final deadline of 18-25 October to either approve or reject six ETF applications including those of Grayscale, 21Shares, Bitwise, WisdomTree, Canary Capital, and CoinShares.
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