XRP price on the verge? Here’s how ETF approval in October will impact Ripple
The XRP price will be in the spotlight in the next few weeks as the countdown to spot XRP ETF approvals accelerates and as it forms highly bullish patterns.
Summary
- The XRP price could go parabolic as the odds of ETF approval jump.
- The coin could jump to the extreme overshoot level at $4.2970.
- It will then pull back after the approval as investors sell the news.
XRP ETF approval odds are rising
Polymarket users are convinced that the Securities and Exchange Commission will approve spot XRP ETFs by the end of the year. The odds of this approval happening have jumped to over 96% this week.
If approval happens, it will likely come in October, when the agency has set final deadlines for most of these funds. The first deadline is the Grayscale Ripple (XRP) ETF, due on October 18.
Other deadlines for funds by 21Shares, Bitwise, Canary, WisdomTree, and Franklin Templeton will follow in the subsequent days.
There are a few reasons why the agency will approve these funds. First, Bitcoin (BTC) and Ethereum (ETH) funds have done well, attracting over $55 billion and $13 billion in inflows since their inceptions.
Second, a U.S. court has ruled that XRP is not a security, removing one of the regulator’s biggest concerns. Further, XRP is a “Made in the USA” asset with utility in the payments industry.
XRP is also a large-cap coin with a market capitalization above $180 billion. It is one of the most actively traded tokens in the crypto industry, with spot and futures open interest both rising.
XRP price forecast before and after ETF approvals
Technicals suggest that the XRP price has more upside in the coming weeks as the countdown for ETF approvals continues. The daily time frame chart shows that the token has formed a falling wedge pattern whose two lines are about to converge.
It has already moved slightly above the wedge’s upper line and is now attempting to retest it. A break-and-retest pattern is one of the most common bullish continuation signals.
XRP has also formed other highly bullish patterns, including a cup-and-handle and a bullish pennant. It also remains above the 100-day moving average.
Therefore, the most likely XRP price forecast is bullish, with the next important resistance at $4.2970, the extreme overshoot of the Murrey Math Lines.
This rebound will likely occur before the ETF approval. After that, the coin will likely pull back as investors sell the news, before rebounding toward $5 as inflows begin.
