XRP Futures ETFs Fuel Bullish Momentum
XRP (XRP) climbed nearly 5% on April 28, reaching an intraday high of $2.36, extending a three-week rebound that has boosted its price by over 46%. This surge follows the approval of three XRP-based futures exchange-traded funds (ETFs) by ProShares. These ETFs, expected to launch on April 30, will offer institutional investors easier access to the XRP market, potentially injecting significant new capital.
While this ETF approval is a positive development for XRP, many in the crypto community argue that the real catalyst for significant price gains will be the approval of a spot XRP ETF. This type of ETF allows investors to buy and sell actual XRP, rather than futures contracts.
The US Securities and Exchange Commission (SEC) has yet to approve a spot XRP ETF, despite several applications being submitted. Grayscale’s application faces a critical decision deadline on May 22, and its outcome will be closely watched by the XRP community.
XRP Whales Are Stacking Up
Despite recent price corrections, large XRP holders, known as whales, have been steadily accumulating the asset. This indicates strong confidence in XRP‘s long-term upside potential and suggests that selling pressure remains limited. This trend has been particularly noticeable since January’s price peak of $3.40, with the number of XRP addresses holding at least 10,000 tokens continuing to increase. This whale accumulation is a positive sign for XRP bulls, suggesting a solid foundation for continued price appreciation.
Technical Breakout Points to Potential 55% Rally
From a technical perspective, XRP appears to have broken out of a falling wedge pattern, indicating a bullish reversal. The price has surged above the upper trendline of this pattern, with a slight increase in trading volume, further reinforcing the breakout signal. The target price for this breakout, determined by measuring the wedge’s height and adding it to the breakout point, sits near $3.63, representing a potential 55% gain from current levels.
The price is now holding above the 50-3D exponential moving average (50-3D EMA), a historical support level, which strengthens the technical signal of a potential rally towards the $3.63 target. XRP‘s relative strength index (RSI) is currently neutral, suggesting that the price has room to grow further.
The Verdict
The approval of XRP futures ETFs has undoubtedly boosted XRP‘s price, offering institutional investors greater exposure to the asset. Whale accumulation and a positive technical outlook add to the bullish sentiment. However, the true catalyst for a significant price surge might come with the approval of a spot XRP ETF. As the market awaits the SEC’s decision on Grayscale’s application, XRP‘s future remains uncertain, but the recent developments have certainly given the bulls something to be optimistic about.
“The real catalyst will come when a Spot XRP ETF gets approved,” argues market analyst John Squire, noting that a futures ETF won’t lead to “real market impact.”
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct thorough research and consider your own financial circumstances before making any investment decisions.
