XRP has made headlines recently, surging nearly 24% following the SEC’s approval of XRP-linked ETFs from ProShares and Grayscale. The sudden spike indicates a significant interest from both institutional and retail investors.
XRP Surges Following ETF Approvals
- XRP increased by 24% after the SEC approved XRP ETFs from ProShares and Grayscale.
- Trading volume soared with over 182 million tokens exchanged, indicating strong demand.
- A breakout above $3.20 removed long-term resistance, unlocking potential targets up to $6.50.
The market was surprised when XRP jumped to $3.27 and briefly reached $3.64 during intraday trading, marking a significant breakthrough after months of stagnation. The rise appears to be fueled by a combination of factors, including enthusiasm around the newly approved ETFs, renewed interest from large institutional players, and strong technical momentum.
The rally coincides with an overall bullish sentiment in the crypto space, providing XRP the impetus it needed to take flight.
What Catalyzed XRP’s Price Increase?
The approval of ETFs has emerged as a primary reason for XRP’s surge. After years of waiting, the SEC approved multiple XRP-linked exchange-traded funds in July, including those from ProShares and Grayscale.
This approval opened the door for substantial funds to engage in trading. Once these products began trading on U.S. exchanges, the floodgates opened.
XRP’s trading volumes skyrocketed, with over 182 million tokens changing hands at one point. This was not merely hype; there were genuine purchases by institutions and retail investors seizing the new access.
Adding to the momentum, Grayscale reintroduced XRP into its Digital Large Cap fund for the first time since regulatory uncertainties began to dissipate. This is a clear indication that Wall Street is becoming increasingly comfortable with XRP’s legal standing.
Moreover, Ripple’s pursuit of a U.S. banking charter has instilled greater confidence among investors that the company and its token are moving towards a more robust regulatory framework.
Key Technical Features
Last week, XRP not only made headlines but also demonstrated significant movement. After years of drifting, it finally broke through stubborn resistance levels around $3.05 and $3.20—levels traders have been eyeing for some time.
This breakout also cleared the top of a massive symmetrical triangle that has been in play since 2018. With this technical barrier lifted, some analysts are now floating price targets in the range of $4.70 to $6.50, albeit contingent on sustained momentum.
In the background, large stakeholders appear to be accumulating. Wallets containing over a million XRP have reached record highs, a strong sign of large-scale accumulation.
Meanwhile, the open interest in perpetual futures contracts hit a record high of $8.8 billion, encompassing approximately 2.9 billion XRP in leveraged bets, signaling increased activity from speculators and professional traders managing risk.
What’s Next for XRP?
Most analysts believe the XRP rally still has room to unfold, assuming that ETF inflows continue and no surprising actions arise from regulators. In the short term, traders are eyeing a range between $3.40 to $3.60, with $4 as the next significant psychological and technical hurdle.
If momentum holds and Ripple continues to rack up regulatory victories, some anticipate a push towards $4.50, possibly even reaching $6 over the next few months.
However, caution is warranted. If XRP falls back below $3.00, it could trigger a retreat towards the $2.80 to $2.90 zone, especially if the broader crypto market cools off or if headlines take a bearish turn.
Nevertheless, with the attempt to set a new historical peak and a market capitalization nearing the $200 billion mark, XRP remains a key story as we approach the fourth quarter.
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