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The SEC acknowledged Grayscale’s application for a spot ETF on XRP, a significant step towards institutional adoption.
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Analysts estimate that $4 billion to $8 million could flow into XRP if a ETF is approved.
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XRP is consolidating at $2.55 and facing resistance at $2.91, $3.40 and ahead of the weekend.
The U.S. Securities and Exchange Commission has now formally accepted the spot XRP ETF submission from Grayscale and NYSE Arca.
This has brought positive feelings back around the token. Many analysts believe XRP could be the next ETF to be approved.
This regulatory development could lead to significant institutional money. Estimates indicate that between $4 billion to $8 billion could enter the market in the first year following approval.
XRP is currently trading at around $2.80 after the recent price rise. XRP faces strong resistance at $2.91. This price level could determine if XRP will move higher this weekend.
If buyers push XRP’s price past this level, it could climb to $3.15. At that level, however, a major trendline will be waiting.
Mixed signals in the XRP market
Momentan, the market is showing mixed signals. XRP is above its 20 and 50% EMAs on a 4-hour chart.
The RSI is at 68, which means that XRP may be getting close to overbought but there is still a lot of buying interest. Traders may see a push over resistance this weekend if XRP remains above the $2.52 level of support.
If it doesn’t reach $2.91 then a short-term fall back to $2.37 could be possible. This $2.37 zone has been a strong support area during previous price dips.
Related:XRP Soars Near $3 As SEC Reviews More Of Its ETF Offers: Approval Coming Soon
Will XRP Break $3.40 Or Face Rejection?
The price of XRP will be largely determined by whether buyers can generate enough momentum to break past the current resistance zones.
If there is a sustained breakout over $3.15, then expect a faster movement towards $3.40. If this level is broken as well, XRP’s gains could extend towards $3.80 over the next few days.
If XRP is rejected below $2.91 and $3.15 it may retest the support levels of $2.52 or $2.37. If XRP drops below these levels, it could signal increased selling pressure and potentially pull XRP to $2.20.
Traders need to look for confirmation signals. Price stability above $2.91 could indicate a stronger bullish sentiment. Price stability below $2.52 may indicate greater downside risk.
Market Sentiment: Cautiously Bullish
Several major asset management firms, including WisdomTree Bitwise 21Shares and Canary Capital have also filed for spot ETFs. This shows a growing demand from traditional financial institutions.
Bloomberg ETF analyst James Seyffart referred to this news as the “biggest XRP announcement in years”. He noted that regulatory approval could change XRP’s current market standing.
Everyone is curious about how an ETF approval will affect XRP. Investors are now focusing on key technical levels as they consider this new information. These levels could determine the price swings to come.
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XRP is still bullish but the next few weeks will be crucial to see if XRP can break through key resistance levels.
If buyers are able to reclaim $3.15 from sellers, the market could see a renewed upward momentum. Traders should be cautious as $3.40 remains a strong resistance.
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