XRP price could be on the cusp of a big move in the coming weeks as its strong technicals and key bullish news events align. One of these XRP news will be the potential approval of a spot exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) later this month.
XRP Price Technical Analysis Points to a Surge
The daily timeframe chart points to an eventual XRP price surge during the Uptober rally. A closer look shows that the coin has formed numerous highly bullish patterns.
First, the Ripple token bottomed at the strong, pivot, and reverse point of the Murrey Math Lines tool. In most cases, cryptocurrency prices tend to rebound whenever they bottom in this level. This explains why it has bounced back by about 12.17% since that time.
Second, the XRP price has also moved above the 50-day Exponential Moving Average (EMA). Rising above that level is a sign that bulls are in control.
Third, the coin formed a falling wedge pattern. This pattern, which is shown in orange, is characterized by two downward-sloping and converging trendlines. These two lines are now nearing their confluence levels, which may lead to a strong breakout.
Finally, the XRP token is now in the handle section of the cup-and-handle pattern, which often leads to more gains. It also formed a bullish flag chart pattern.
Therefore, all these patterns point to a major short-squeeze in the coming weeks. If this happens, it will first jump to the year-to-date high of $3.6, and possibly to the psychological point at $5. With the XRP price trading at $4, moving to $5 implies a 65% surge, which is possible in the crypto market.
SEC May Approve XRP ETFs This Month
The main reason why the Ripple price may have a bullish breakout is that the SEC is in the final stages of approving multiple ETFs. One of the most anticipated ones will be the spot XRP ETF, with the odds this happening nearing 100%. This increase happened as the SEC launched the generic listing standards.
The approval of ETFs filed by companies like Franklin Templeton, Invesco, and BitWise will be important for the XRP token because it will bring in new money from American institutional investors. These investors see top cryptocurrencies as viable liquid alternative assets.
Not all altcoin ETFs will be popular among these investors. XRP could be one of those that will succeed because of its size and popularity. Indeed, the recently launched XRPR ETF has already attracted over $77.6 million in assets. The other funds by more popular companies will experience more inflows than this.