Franklin Templeton Files for XRP ETF, XRP Surges 8%

Franklin Templeton, a prominent asset manager with over $1.5 trillion in assets, has submitted a filing with the SEC to launch a spot XRP exchange-traded fund (ETF). This move has sparked a notable recovery in the XRP market, which has been struggling alongside other cryptocurrencies. The filing positions Franklin Templeton alongside other major players such as 21Shares, Canary Capital, Grayscale, Bitwise, and wisdomtree, all of whom have applied for similar XRP ETFs.

This development has brought a sense of relief to the broader market, contributing to XRP's rebound. At the time of the announcement, XRP had surged by 8% on the daily chart, reclaiming the $2 mark. This recovery is significant as it indicates a potential shift in market sentiment towards XRP, which has been under pressure due to various macroeconomic factors.

Technical analysis of XRP shows that the cryptocurrency is currently trading within a well-defined falling wedge channel. The nearest resistance level is at $2.58, while the nearest support level is at $1.98. The 50-day moving average (MA) at $2.58 is slightly above the 200-day MA at $1.62, suggesting a minor bullish momentum. However, the price has recently tested the lower boundary of the channel and is attempting to rebound.

If the bulls can sustain the price above the 50-day moving average, it could trigger renewed buying strength, potentially pushing XRP towards the $2.93 resistance level. A breakout above this level could open the door for further upside potential, with resistance levels at $3.16 and $3.50 in sight. Conversely, if the price falls below the $1.98 support level, it could invite more selling pressure and potentially lead to deeper declines.

Technical indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) show mixed reactions. The RSI has moved from the undervalued region to 42.95, and a breakout above the 50-mean level would validate the bullish thesis. The MACD currently sits below the signal line, indicating some bearish prospects, but a flip above the signal line and into positive territory could signal renewed bullish strength.

Despite the recent volatility, XRP's long-term growth potential remains strong. The increasing institutional adoption, as evidenced by the rising number of asset managers applying for XRP ETFs, suggests that XRP could rise at a steady pace as the bearish market outlook eases. The SEC has acknowledged most of the filings, and the odds of approval on Polymarket remain at 75%. Analysts have hinted at the possibility of approval happening before the end of 2025, which could mark the end of the long-standing battle between the SEC and Ripple and spark even greater institutional adoption of XRP.

Additionally, the upcoming "strategic crypto reserve" in the United States, which will include XRP alongside other major cryptocurrencies, further supports the long-term potential of XRP. Despite criticisms, the probability of XRP being removed from the list is slim. Ripple's continuous expansion amid the volatile market outlook has led many market analysts to predict a parabolic rally that could turn XRP into a double-figure asset before the end of the year.