XRP ETF Approval Odds Rise, 10 Applications Under Review
1min read XRP, the cryptocurrency associated with Ripple, is currently under the spotlight as the odds of an ETF approval rise, potentially leading to a significant price breakout. The likelihood of an XRP ETF approval has increased, with a recent report from Kaiko highlighting that XRP is the leading altcoin in terms of the number of outstanding ETF applications. There are currently 10 XRP-based ETF applications under review, surpassing its nearest rival, Solana, which has only five applications. Dogecoin and Litecoin are tied for third place with five applications each.
This development comes as Ripple and the SEC jointly filed to suspend their October appeals, a move that has bolstered XRP’s long-term price prediction. The suspension of appeals suggests a potential resolution to the legal disputes, which could pave the way for regulatory clarity and approval of XRP ETFs. This regulatory clarity is seen as a bullish indicator for XRP, as it could lead to increased institutional investment and mainstream adoption.
Despite the recent 4% drop in XRP's price to $2.08, the cryptocurrency has shown impressive gains over the past year, with a 317% increase. This performance is attributed to the growing optimism surrounding the potential approval of XRP ETFs. The report from Kaiko also noted that XRP’s share of spot volume on US exchanges has risen in recent months, reaching 20% of all trading volume. In contrast, Solana’s share has declined from over 25% to 16% in the past couple of years, further strengthening the case for XRP ETF approval.
Analysts from Kaiko highlighted that the improving market dynamics and the launch of a 2x XRP ETF position XRP ahead of other assets when it comes to approval. Although some tokens, such as Litecoin, which have similar consensus mechanisms to Bitcoin and share similarities to commodities, could also have a clear path to approval, XRP's current standing makes it a strong contender. The analysts' optimism is based on the underlying market dynamics and the recent regulatory developments, which suggest that XRP is well-positioned for approval.
However, the immediate impact of this optimism on XRP's price has been limited. The coin's chart suggests that it may be waning after looking like it could recapture strong momentum. The RSI (Relative Strength Index) has fallen below 50, and the 30-period average has also declined, indicating a potential drop in price to $2 in the near term. Despite this, an improvement in the tariff situation could see XRP spring back up to $2.50 in a matter of weeks, highlighting the volatility and potential for significant price movements in the cryptocurrency market.
