XRP has surged over 3% following the SEC’s approval of ProShares’ XRP futures ETFs, set to debut this week. Ripple’s President has dispelled IPO rumours, stating the company remains financially robust. Technical analysis suggests potential for further growth, but market volatility remains a concern. Meanwhile, Bitcoin’s strong position in the market reinforces its role among investors.
XRP has shown a notable increase as of Monday, rising over 3% to around $2.33. This uptick seems linked to the recent announcement regarding the SEC’s approval of ProShares’ XRP futures Exchange Traded Funds (ETFs), which are set to launch later this week. Crypto enthusiasts are tuning in, particularly as Bitcoin hovers near $95,000, reflecting a broader recovery in the crypto market.
The approval for various XRP futures ETFs, including the ProShares UltraShort XRP ETF and others, was officially given the green light by the SEC. This effective date is marked for Wednesday, prompting optimism among traders as they also look ahead to potential spot ETF approvals, though those might take longer to materialise in the US. In an interesting twist, Brazil has already seen the launch of its first-ever XRP spot ETF.
On another front, speculation regarding Ripple’s potential IPO has been derailed. Ripple President Monica Long clarified that the company is in good financial standing—”billions of dollars in cash”—and has no immediate plans to go public. During an interview, Long emphasised the company’s focus on stablecoin development and asset tokenization as key components of their strategy, not stock market expansion.
Technical indicators suggest an 8% potential rally for XRP, with resistance levels likely to be tested around $2.51. The daily price chart indicates a bullish pattern with the Relative Strength Index (RSI) reading at 62, signalling rising momentum. If XRP manages to close above this resistance, further rises to the $2.72 mark could be possible. But it’s worth noting that support lies at $2.04—should Bitcoin face a downturn, XRP could slip to this level.
Bitcoin dominance continues to be a significant player in the crypto landscape, offering a glimpse into investor preferences. While Bitcoin is seen as a stable investment, many turn to altcoins for potentially higher returns, especially in times of volatility. Altcoins, for context, are any cryptocurrencies other than Bitcoin, and stablecoins aim to provide price stability, making crypto investment a bit more manageable.
It’s crucial to note that any forecasts or predictions made in this article come with inherent risks, and thorough research is advised before making any investments. The market can fluctuate wildly and unexpected events may influence prices rapidly. FXStreet and the author bear no responsibility for losses incurred, neither do they provide personalised investment advice which should always be approached with caution.
