XRP, the cryptocurrency associated with Ripple, is currently generating interest as the price slowly forms a bullish pennant pattern. This development comes amid heightened expectations that the Securities and Exchange Commission (SEC) might approve a Ripple ETF by 2025. The XRP price, currently trading at $2.20, has experienced a decline of 25% since reaching its peak earlier this year, indicating a bear market trend.
Several companies, including Bitwise, Canary Capital, 21Shares, and WisdomTree, have already submitted proposals for an XRP ETF. Furthermore, industry giants such as Fidelity, Blackrock, and Ark Invest are anticipated to follow suit, inspired by their successes with Bitcoin and Ethereum ETFs. Notably, Blackrock has amassed over $52 billion in Bitcoin and $3.54 billion in Ethereum funds. If a Ripple ETF gains approval, XRP could experience a significant price surge, as seen with previous ETF approvals for Bitcoin and Ethereum.
Optimism surrounding a Ripple ETF approval has grown following political changes in the United States, where Donald Trump recently won the general election. His nomination of Paul Atkins as the next SEC chair is expected to lead to substantial regulatory reforms, potentially resulting in several major ETF approvals in 2024.
XRP’s price stability is also attributed to the expanding market presence of the XRP Ledger and the RLUSD stablecoin, which has recently achieved over $53 million in market capitalization just weeks after its launch. The price of XRP recently peaked at $2.90 in December, although it has since retreated by 25%, remaining above the 50-day and 100-day Exponential Moving Averages, suggesting the continuation of an uptrend.
Currently in a consolidation phase, the XRP price is forming a bullish pennant pattern characterized by a vertical rise, a flagpole, and a symmetrical triangle. This pattern is expected to precede a robust bullish breakout in the coming weeks, especially with the rising likelihood of an ETF approval. Should the breakout occur, the price could climb back to the year’s high of $2.90, with further potential increases to $3 and possibly $5.
Disclosure: This article does not constitute investment advice. All information provided is intended solely for educational purposes.
