Key Factors Influencing XRP Price as Ripple ETF Momentum Grows

4d ago•

bullish:

bearish:

Ripple’s token XRP (XRP/USD) has recently consolidated around $2.86–$2.91, a 4.27% surge since Sunday, even as the Ripple ETF momentum heads towards a crescendo.

According to a report on Financial Content, the latest price action surrounding the cross-border payment token is driven by technical strength and increased optimism surrounding ongoing regulatory changes and the anticipated momentum of the Ripple ETF.

A Confluence of Factors

Analysts have noted that XRP’s ability to maintain a position above $2.70 has enhanced bullish expectations, with many keeping a keen eye for a potential surge towards the $3.40 resistance zone. Short-term price indicators, such as the moving average and RSI, point towards a positive sentiment, even though traders are still wary of potential volatility.

Also read: XRP Price Prediction Shaken as Pullback Overshadows Record ETF Launch

The current market sentiment surrounding the XRP price can be associated with a confluence of numerous factors. The first is regulatory clarity provided by the latest favorable SEC ruling, which most experts believe could signal an imminent momentum for Ripple ETFs.

As the token navigates crucial support levels, experts are keenly watching this ongoing Ripple ETF momentum to see if it will translate into a sustained rally and potentially reshape the landscape for the prominent altcoin.

Apart from the growing Ripple ETF momentum, last month’s settlement with the SEC finally classified the token as a non-security when it’s traded on public exchanges, therefore removing the years-old regulatory overhang. This clarity coincided with several XRP ETF applications from prominent asset managers, including Bitwise and Grayscale.

REX-Osprey XRP ETF

The launch of the REX-Osprey XRP ETF in September, with a substantial first-day trading volume of $37.7 million, has created positive Ripple ETF momentum, indicating growing institutional interest. Numerous institutions are getting increasingly involved in XRP following the SEC ruling, with XRP whales actively accumulating more tokens.

On-chain data shows that several addresses holding between 10,000 and 100,000 XRP have not demonstrated any capitulation despite the recent price corrections, which contrasts sharply with retail outflows.

At the same time, the circulating supply on major cryptocurrency exchanges appears to be declining, suggesting an imminent supply squeeze once institutional inflows begin to accelerate. These signals are similar to what was experienced in 2017 when XRP experienced a 37,800% rally after a record quarterly close.

Conclusion

Traders are keeping a keen eye on XRP as the token adapts to the ongoing factors. Analysts have linked the ongoing rebound and analyst predictions for a potential $5 by October to growing momentum in the Ripple ETF. As the SEC’s new 75-day rule lowers entry barriers for any XRP ETF application, there’s every chance that XRP is entering a penultimate phase in its evolution.

The resolution of the SEC lawsuit and the decision on the token’s position may be the cornerstone of the resurgence that has paved the way for regulated investment products, such as the spot XRP ETF.

Summary

XRP rose by over 4% in 24 hours, driven by significant institutional accumulation and the ongoing momentum of the Ripple ETF.
Several XRP spot ETF applications are pending with the SEC, with decisions expected around October.
Whale transfers have reportedly surged, indicating potential institutional accumulation of XRP.
The market anticipates a potential Fed rate cut, which could inject liquidity into digital assets, benefiting XRP.

Glossary to Key Terms

Ripple: The private technology company Ripple Labs and its native cryptocurrency, XRP, which operates on the open-source XRP Ledger.

XRP: A digital asset and cryptocurrency that was designed for the financial sector to enable fast, low-cost, and efficient international payments.

XRP ETF: An investment product that lets people gain exposure to XRP through a stock exchange, rather than by buying the cryptocurrency directly.

Whales: An individual, corporation, or institution that holds a large enough amount of a specific cryptocurrency to influence the market price significantly.

Frequently Asked Questions about XRP ETFs

Will an XRP ETF affect the price of XRP?

Historically, ETF approvals have brought more liquidity and potentially higher demand, which can sometimes lead to price increases.

What are the requirements for an XRP ETF to launch?

The regulator will have legal clarity on the status of XRP, approve custodians, and ensure fund operations comply with market rules. The SEC’s position is a key factor for US-based products.