As traders eagerly await the upcoming Federal Reserve meeting on September 17, attention is focused on anticipated interest rate cuts that could boost demand for cryptocurrencies, particularly XRP. Economists predict that multiple rate reductions may soon provide a lift to XRP products, including the REX-Osprey XRP ETF. However, investors might have to wait until October to accurately assess institutional interest in XRP through spot ETFs.
Currently, 11 issuers are seeking approval from the Securities and Exchange Commission (SEC), with deadlines for decisions ranging from October 18 to November 14. Notable names among these issuers include 21Shares, Bitwise, Canary Capital, CoinShares, Franklin Templeton, Grayscale, ProShares, and WisdomTree. In August, several of these firms submitted S-1 amendments to the SEC, indicating progress toward a potential launch of their crypto products.
However, the crypto community anticipates that a standardized ETF framework from the SEC could arrive at any time and is expected to facilitate a surge in crypto-spot ETF launches.
In the political arena, the Market Structure Bill currently in progress on Capitol Hill is gaining attention among XRP traders. There is growing optimism regarding the potential passage of this bill before Christmas. During a recent fireside chat at CoinDesk’s Policy & Regulation Summit, Senator Cynthia Lummis remarked on how the Democrats’ market structure principles have illuminated the minimal differences between the two political parties.
The Market Structure Bill is particularly crucial as it aims to provide regulatory clarity for the digital asset landscape. It would address the classification of cryptocurrencies as securities or non-securities and grant greater regulatory oversight to the Commodity Futures Trading Commission (CFTC). Previously, XRP saw a remarkable 14.69% price surge, reaching a peak of $3.66 in reaction to the US House of Representatives passing this bill.
In terms of technical performance, XRP experienced a decline of 2.86% on September 14, closing at $3.0311 after a slight gain the previous day. Despite this setback, the cryptocurrency has maintained its position above the psychological barrier of $3 for the fourth consecutive session. Key technical levels for traders include:
- Support Levels: $3, $2.8, and $2.5
- Resistance Levels: $3.2, $3.33, and the all-time high of $3.66
Looking ahead, several pivotal events could shape XRP’s price trajectory. The approval or delay of XRP-spot ETFs might significantly impact buyer sentiment, especially if major firms like BlackRock file for a trust. Additionally, announcements from blue-chip companies about acquiring XRP as a treasury asset could further influence XRP’s standing. Regulatory developments, including Ripple’s application for a US-chartered bank license and updates regarding the Market Structure Bill, will also play a role.
Outlook scenarios for XRP reveal a complex interplay of factors.
Bearish outcomes could arise from legislative delays, such as a Democratic challenge to the Market Structure Bill, or if companies show limited interest in XRP. Additionally, if Ripple’s bank license application experiences setbacks or if SWIFT retains dominance in global remittances, these factors might push XRP below the $3 mark, with $2.8 and $2.5 as subsequent support levels.
Conversely, a bullish scenario could be triggered by BlackRock’s filing for an iShares XRP Trust, alongside SEC approval of spot ETFs. Increased adoption of XRP by blue-chip companies, Ripple securing its bank license, and favorable movements related to the Market Structure Bill could elevate XRP above $3.2, possibly revisiting its record high of $3.66. As the market evolves, XRP traders remain vigilant, ready for shifts that could define the future of this cryptocurrency.
