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Key Insights:
- XRP price could rally soon ahead of the XRP ETF approval in October.
- The XRP’s future open interest has jumped in the last four years.
- Technical analysis points to more gains in the coming weeks.
XRP price is slowly breaking out, starting a bullish trend that may push it to a record high as the deadline for top XRP ETFs nears and as bullish chart patterns form. Ripple token was trading at $3.027 on Tuesday, up from this month’s low of $2.6905.
XRP Price Could Surge as ETF Approval Deadline Nears
The main catalyst for the XRP price is that the deadline for most of the applied exchange-traded funds is fast approaching. Most of these funds will be approved in the second week of October.
Data on Polymarket shows that the odds that the agency will approve the funds by the end of the year have jumped to 93%, the highest level on record.
Crypto investors are optimistic that Paul Atkins, the head of the Securities and Exchange Commission (SEC), who Donald Trump appointed, will ultimately agree to approve ETFs of the top blue-chip Made in America coins.
XRP likely fits the bill as it is the third-biggest cryptocurrency with a market capitalization of over $180 billion. It is also a utility coin that powers the RippleNet platform, simplifying cross-border payments.
Most importantly, a US court has ruled that XRP is not a security, meaning the agency has no good reason to reject a spot XRP ETF since it has already approved an Ethereum one.
A spot ETF approval will be bullish for the coin, leading to robust demand from American investors. Existing data shows that these investors are still interested in crypto ETFs.
Bitcoin ETFs have added over $54 billion in inflows since their inception in January last year. They now hold over $168 billion in assets. Similarly, spot Ethereum ETFs have added over $13 billion in assets.
Most recently, the Teucrium Leveraged XRP ETF (XXRP) and the ProShares XRP ETF (UXRP) have had inflows of over $300 million and $100 million in the past few months.
Strong XRP Demand and Ripple Utility
Another bullish catalyst for the XRP price is third-party data indicating a strong demand for the coin. For example, CoinMarketCap data reveals that the daily volume was over $6.4 billion, making it one of the most actively traded coins in the crypto industry.
More data compiled by CoinGlass shows that open interest in the futures market has continued rising this week. It jumped to $8.25 billion on September 9, the fourth consecutive day of gains. The open interest soared to the highest level since August 14.
Meanwhile, more data shows that Ripple’s utility is growing. For example, the total supply of the Ripple USD (RLUSD) stablecoin has grown to over $728 million, a big milestone for a stablecoin that was launched in December last year.
XRP Price Technical Analysis Points to a Parabolic Move
The daily timeframe chart shows that the XRP token has formed several highly bullish chart patterns that will lead to a strong comeback ahead of the XRP ETF approvals.
The first main pattern is the falling wedge, which is defined by two falling and converging trendlines. Its two lines have now neared their confluence, which explains why it has already started to break out.
The two lines of the MACD indicator have made their bullish crossover and are pointing upwards. Similarly, the Relative Strength Index (RSI) has also jumped and crossed the neutral level at 50, which is normally bullish.
Additionally, the Ripple price has formed a bullish pennant pattern with a vertical line and a symmetrical triangle. It then formed a cup-and-handle pattern.
Therefore, the token will likely continue soaring as bulls target the first resistance level at $3.6654, the highest point this year. However, a drop below the support at $2.5 will cancel the bullish forecast and point to more downside to $2 and below.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
