XRP Surges 6% as Franklin Templeton Files ETF, Boosting Market Confidence

XRP, the seventh-largest cryptocurrency by market capitalization, has seen a notable rebound in its price, gaining 6% over the past 24 hours to trade at $2.24. This recovery comes after a significant market crash earlier in the week, with the cryptocurrency now trading 18% above its 24-hour low of $1.89. The positive sentiment in the crypto market has contributed to this price surge.

One of the primary drivers behind XRP's recent price increase is the filing of an XRP Exchange-Traded Fund (ETF) by Franklin Templeton. On March 11, the California-based asset manager submitted an S-1 registration form with the US Securities and Exchange Commission (SEC) to launch a spot XRP ETF. This move signals a strong vote of confidence in XRP's potential as a mainstream investment vehicle. Franklin Templeton, with $1.5 trillion in assets under management, joins a growing list of financial giants pursuing XRP-based ETFs, including Bitwise, Grayscale, and WisdomTree. The news has sparked speculation about potential major capital inflows that could push XRP's price into double digits.

Despite the SEC delaying decisions on other XRP ETF applications, such as those from Grayscale and Canary Capital, until May 2025, Franklin Templeton's entry has boosted market confidence. The odds of a US spot XRP ETF being approved in 2025 are now at 76% on Polymarket. If approved, it would significantly enhance XRP's credibility and could attract billions of dollars in capital inflows, according to JP Morgan.

Beyond external catalysts, onchain data provides additional support for XRP's price recovery. Metrics like the Market Value to Realized Value (MVRV) ratio suggest that XRP may have bottomed. The MVRV ratio compares XRP’s market cap to the value of coins at their last transaction, offering insight into whether the asset is overbought or oversold. Data shows XRP’s 30-day MVRV ratio has plunged to a low of -16%, the lowest since April 2024. This indicates that selling pressure has subsided and that XRP is in a zone typically associated with accumulation. Historically, XRP usually experiences a reversal whenever the 30-day MVRV declines below 10%.

XRP's price action has been nurturing a V-shaped recovery chart pattern on the four-hour chart since March 6. A V-shaped recovery is a bullish pattern formed when an asset experiences a sharp price increase after a steep decline. XRP appears to be on a similar trajectory and now trades below a key supply congestion zone between $2.30 and $2.45, where all the major simple moving averages (SMAs) are currently sitting. The bulls must now push XRP above this area to increase the chances of the price rising to the neckline at $2.64 to complete the V-pattern. Completing the V-shaped recovery would result in 20% gains from the current price. The relative strength index has risen from oversold conditions at 27 on March 10 to 44 on March 1, suggesting that bullish momentum is picking up.