-
Recent developments around XRP reveal a promising shift in investor sentiment, particularly with the acknowledgment of multiple spot ETF filings by the SEC.
-
This surge in attention from the SEC is seen as a watershed moment not just for XRP, but potentially for the wider cryptocurrency market.
-
“The SEC’s recognition of these ETF applications could signify a turning point in the regulatory landscape for cryptocurrencies,” stated experts from COINOTAG.
Crypto investors are buoyed by the SEC’s acknowledgment of multiple spot XRP ETF filings, leading to renewed optimism in the market.
SEC goes on a spot XRP ETF acknowledgment spree
The recent bullish activity around XRP can be associated with its ETF news, as the SEC acknowledged another spot ETF filing submitted by CoinShares via Nasdaq. This is the fourth spot XRP ETF filing that has received the initial nod from the SEC, following those from Grayscale, 21Shares, and Bitwise. The commission has also acknowledged the ETF filings on behalf of WisdomTree and Canary Capital, as reported by Cointelegraph. Brazil’s securities commission, Comissão de Valores Mobiliários, also approved the nation’s first spot XRP ETF presented by Hashdex, specifically the Nasdaq XRP Index fund. However, despite this approval, the ETF is not yet live for trading, with Hashdex announcing that further details will be released soon.
While these developments provide a solid foundation for XRP’s future performance, it is noteworthy that XRP futures traders have not yet returned in full strength. Earlier this month, Cointelegraph reported a staggering drop in XRP’s open interest (OI) by more than 78% after a substantial price decline of 26% during the first week of February.
XRP futures open interest chart. Source: CoinGlass
Though XRP prices have surged almost 20% following this dip, the futures open interest has only seen a mere increase of $600 million, recovering from a previous close to $4 billion in notional value. This lackluster performance indicates that trading activity is currently muted, making price action vulnerable to potential manipulation and volatility.
Analyst predicts XRP “god candle” to $6
As XRP shows signs of a robust recovery when compared to other major altcoins, an anonymous crypto commentator known as Polly believes market makers are positioning the asset for significant gains, potentially targeting an all-time high. Polly forecasts that the resolution of the ongoing SEC-Ripple lawsuit could arrive by the end of February, which they believe would unleash a “god candle,” propelling XRP prices as high as $6 within a short 10-day window. However, it’s crucial to note that this prediction is built on assumptions that remain unverified by any official announcements from either the SEC or Ripple.
While Polly’s prediction may raise eyebrows, another analyst specializing in XRP markets, Dom, emphasizes the importance of the token’s resistance range, currently positioned between $2.50 and $2.80. Dom elaborated that XRP’s all-time high volume weighted average price (VWAP) serves as a significant overhead resistance point, sitting just above $2.80. Hence, breaking this ceiling and sustaining a daily closure above it will be a crucial milestone for XRP before aiming for new all-time highs or retesting its existing ATH of $3.40.
XRP 6-hour analysis by Dom. Source: X.com
In light of these dynamics, analysts suggest that maintaining focus on these resistance levels will be key for traders looking to capitalize on any potential bullish momentum.
Conclusion
In summary, the recent acknowledgment of multiple spot XRP ETFs by the SEC has created a positive atmosphere for XRP traders, reinforced by optimistic market sentiments predicting significant upward movements. The ability of XRP to breach the critical resistance zone could prove pivotal for its trajectory moving forward. Traders and investors are encouraged to stay informed about ongoing developments and market conditions as these factors will heavily influence potential price actions in the near term.
