XRP’s price action is attracting considerable attention, as it has recently formed a bull flag pattern on the daily chart, signaling strong bullish momentum. This technical pattern typically indicates a potential breakout following a period of consolidation, which could lead XRP on a path toward the key price target of $5.
Currently, XRP is facing resistance at the upper trendline of the bull flag pattern, situated at $3. Achieving a daily candlestick close above this threshold could confirm a bullish breakout and set the stage for a notable price increase. If this breakout is successful, it could signify a 77% rise from the present price, potentially pushing XRP toward its target of $5. However, before this rally can materialize, traders must navigate resistance levels, including the 50-day simple moving average (SMA) at $3.08, an area that has suppressed XRP’s price since August 24.
Further resistance points include $3.40 and the multi-year high of $3.66, achieved on July 18. On the other hand, critical support zones lie between the 100-day SMA at $2.68 and the 200-day SMA at $2.48. Maintaining price levels above these support areas will be essential for keeping the bullish setup intact.
Crypto analyst Crypto Pulse suggested last week that XRP could be on the verge of a significant breakout toward $5. According to the analyst, the price needs to hold above the August 3 low of $2.75 to maintain its bullish structure. Failure to do so could lead to a retest of the $2.5-$2.6 zone before any potential upward movement.
Market dynamics are further influenced by the impending decisions from the US Securities and Exchange Commission (SEC) regarding spot XRP exchange-traded fund (ETF) applications. The SEC is scheduled to judge these proposals between October 18 and October 25, with a notable deadline for the Franklin Templeton XRP ETF set for November 14. There are currently 11 ETF proposals under review following Ripple’s recent legal victory, which clarified XRP’s status as a non-security.
Optimism is rife among market participants, with current betting odds for the approval of an XRP ETF by year-end standing at 87% on Polymarket. This percentage has risen significantly over the past month, boosting from about 64% on August 6. Analysts like Nate Geraci from the ETF Store express heightened confidence, suggesting that the odds of approval may be as high as 100%. Similarly, Bloomberg’s senior ETF analyst Eric Balchunas estimates an approval probability of 95%, attributing this optimism to greater regulatory clarity and changes within the SEC.
The approval of XRP ETFs could catalyze institutional investment and demand for XRP tokens, potentially propelling prices toward levels between $10 and $20. Some forecasts even speculate that if major financial players, such as BlackRock, enter the market, prices could soar to unprecedented levels, with estimates reaching as high as $50.
As the market awaits these significant developments, investors are reminded of the inherent risks involved in trading and investing, emphasizing the importance of thorough research and careful decision-making.
