Ripple’s XRP continues to show resilience in its recovery, currently trading above the critical 100-day Exponential Moving Average (EMA) support level, which stands at $2.76. The cryptocurrency is eyeing a potential breakout past the psychological barrier of $3.00, with bulls optimistic about reaching an all-time high of $3.66. This bullish sentiment is largely fueled by recent developments surrounding proposed changes to the approval process for Exchange Traded Funds (ETFs), which could enhance the chances of XRP ETFs gaining the green light from the U.S. Securities and Exchange Commission (SEC).
Recent filings by Cboe’s BZX exchange, NASDAQ, and NYSE Arca aim to expedite the approval process for crypto ETFs by presenting amendments to the existing listing standards. Amid a surge of capital inflows into Bitcoin (BTC) and Ethereum (ETH) spot ETFs, the SEC is currently facing a backlog of over 90 crypto ETF proposals. The 19b-4 filings allow self-regulatory entities, like exchanges, to propose rule changes for SEC consideration.
Historically, the SEC has taken the full 240-day maximum to approve ETF applications, leading to delays that have frustrated market participants. However, the new proposal would allow for a more streamlined approval process, potentially accelerating the introduction of various crypto ETFs. According to Galaxy Research, ten tokens qualify under the new listing criteria, including popular assets like Dogecoin (DOGE), Bitcoin Cash (BCH), and Solana (SOL). XRP and Cardano (ADA) are expected to meet the conditions by September 20 and October 1, respectively, thereby enhancing their prospects for expedited listing.
The proposed criteria require that the asset trades on a market that is a member of the Intermarket Surveillance Group (ISG), must have a futures contract available for trading for at least six months, and that the ETF provides at least 40% economic exposure to the underlying asset. These parameters aim to ensure greater transparency and market integrity.
XRP’s position in this evolving landscape is promising, as organizations have already communicated support for the expedited criteria to the SEC. Industry stakeholders, including the Digital Chamber and Multicoin Capital Management, suggest that a minimum market capitalization of $500 million and trading volumes of at least $50 million over the last six months should be required for approval.
On the technical front, XRP remains above the 100-day EMA, indicating bullish momentum, as traders anticipate a breakout above $3.00. The Relative Strength Index (RSI) is showing signs of a potential uptrend, which could contribute to increased buying activity. Yet, market participants are urged to remain cautious as the Moving Average Convergence Divergence (MACD) has issued a sell signal since late July. Should XRP lose the 100-day EMA support, a further decline towards the 200-day EMA at $2.51 could occur.
In a related legal context, recent court rulings have clarified the status of XRP in relation to the SEC’s regulations. Sales to institutional investors are classified as securities, while programmatic sales to retail investors do not fall under this definition. This distinction has significant implications for Ripple amid ongoing SEC scrutiny. The ruling offers a partial win for Ripple but leaves many questions unresolved regarding how similar cases will unfold in the rapidly evolving crypto environment.
As regulatory pressures mount, Ripple’s ability to qualify for expedited ETF listings could solidify XRP’s position as a legitimate asset class, thereby further attracting diverse capital sources and boosting investor sentiment.
