- XRP holders’ confidence grows as the chances of XRP spot ETF approvals jump to 85% from 65% in less than two months.
- XRP remains above support at $2.20, highlighted by a confluence of the 50- and 100-day EMAs.
- Traders anticipate a breakout above descending trendline resistance, backed by a buy signal from the MACD indicator.
- Still, discussion around XRP relative to other top cryptocurrencies has declined, increasing downside risks.
Ripple (XRP) price remains firmly supported at $2.20, while trading at $2.22 at the time of writing on Friday. The XRP community is growing increasingly confident in its holdings amid renewed optimism for the approval of spot XRP Exchange Traded Funds (ETFs) following the change in leadership at the Securities and Exchange Commission (SEC). Breaking above a four-month descending trendline could boost XRP’s bullish prospects and potentially drive the price towards $3.00.
XRP spot ETF approval chances jump
The change of leadership at the SEC, with Paul Atkins as the Chair of the regulatory agency, has seen the chances of an XRP spot ETF approval jump to 85% from 65% in just two months. According to Santiment, “traders are now predicting new all-time highs for XRP, and betting platforms like Polymarket reflect this shift, with 79% odds of approval by the end of the year.”
Spot XRP ETF approval odds | Source: Polymarket
The prospects of a spot XRP ETF approval have remained steady despite the SEC postponing its decision on Franklin Templeton’s spot ETF proposal until June 17. The approval of the spot ETF could significantly alter investment dynamics surrounding XRP, potentially attracting substantial institutional interest and propelling the token into the mainstream financial sector.
XRP uptrend could gain momentum
XRP’s price holds firmly to confluence support at $2.20, established by the 50- and 100-day Exponential Moving Averages (EMA). Despite the pivotal movement around this level in the past week, XRP shows signs of the uptrend’s continuation towards a medium-term target of $3.00.
A buy signal in the Moving Average Convergence Divergence (MACD) indicator reinforces the bullish momentum. This signal was confirmed on April 12 when the MACD line (blue) crossed above the signal line (red).
Additionally, the indicator’s movement above the center line, accompanied by the expansion of green histograms, increases the likelihood of a breakout above the descending trendline, as illustrated on the daily chart.
XRP/USDT daily chart
Traders should prepare for possible drawdowns at $2.50 and $2.80 supply zones. Selling due to profit-taking could overwhelm bullish momentum at these levels, slowing the uptrend or even leading to reversals.
The SuperTrend indicator’s sell signal highlights the potential selling pressure in XRP’s recovery path. This indicator sends a sell signal when it flips above the token’s price, changing color from green to red. Traders should consider the position of the SuperTrend when making decisions.
Meanwhile, Santiment’s biweekly market update notes that chatter about XRP, compared to other top cryptocurrencies, has steadily declined over the past three months. This downtrend in social dominance could hold back XRP’s uptrend.
XRP’s ratio of bullish vs. bearish commentary | Source: Santiment
In the event that support at $2.20 gives way, and the XRP price slides, traders would look to the 200-day EMA at $1.99 for a potential rebound. Beyond this level, volatility could spike, creating instability and accelerating losses toward XRP’s April 7 low at $1.61.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.
The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.
