NOIDA (CoinChapter.com) — XRP’s price could start a rollercoaster ride in the coming months thanks to a mix of bullish technical and fundamental signals. More precisely, the cryptocurrency expects to gain at least 30% in its market valuation by June’s end.
Let’s discuss how XRP’s price can rally in the first half of 2024.
XRP Price is Nearing Long-Awaited Breakout
XRP bulls have been keenly waiting for a breakout for years. That involves the cryptocurrency’s attempts to close decisively above its long-standing descending trendline resistance (the black one in the chart below). It is making a similar attempt in February.
XRP’s price faces additional resistance pressure from its 0.236 Fibonacci retracement level near $0.61. The cryptocurrency could break above it in the coming weeks, primarily under the influence of an overall crypto market boom led by Bitcoin (BTC).
If a breakout happens, the XRP price’s next upside target is near the 0.382 Fib line at $0.79, up 30% from current price levels.
XRP ETF Buzz Returns Thanks to a $9T Whale
The cryptocurrency market is abuzz with speculation surrounding a potential XRP ETF from investment giant BlackRock. While unconfirmed, an ETF by the investment giant could significantly affect XRP’s adoption, price, and overall trajectory.
Blackrock, with over $9 trillion in assets under management, would likely introduce an XRP ETF, according to an X-based trader. However, a key factor influencing the speculation is the ongoing Ripple v. SEC lawsuit.
A favorable outcome for Ripple could clear a significant legal hurdle for an XRP ETF. Moreover, some jurisdictions already classify XRP as a non-security, offering a potential path for regulated and streamlined access through the fund.
Additionally, it is likely that once Blackrock launches an XRP ETF, other firms will join the bandwagon, resulting in potentially of billions of dollars of inflows in XRP investment vehicles.
Ripple CEO Brad Garlinghouse also expressed optimism about firms like Blackrock launching ETFs with assets other than Bitcoin. In an interview with Bloomberg Crypto, Garlinghouse said that Ripple would “certainly” welcome an XRP ETF.
The Ripple chief predicted that multiple ETFs with different tokens or even a basket of tokens was inevitable. Interestingly, Garlinghouse refused to comment on whether Ripple was in talks with Blackrock regarding an ETF launch, leading to a flurry of speculations on social media.
What If SEC Approval Arrives
If approved, an XRP ETF would likely attract substantial inflows, potentially increasing demand for the cryptocurrency and affecting its price. Existing spot Bitcoin ETFs demonstrate that billions of dollars could flow into XRP, potentially altering its valuation and further establishing it amongst leading crypto assets.
For instance, in the month since launch, spot Bitcoin ETFs (excluding Greyscale Investment’s GBTC) accumulated $11 billion worth of BTC. Though the token’s price is significantly lower than BTC, traders expect similar excitement from market participants post-XRP ETF launch.
Furthermore, an XRP ETF could signal regulatory acceptance, enhancing its legitimacy in mainstream investment circles. This may foster institutional adoption, adding stability to an asset known for its price volatility.
However, potential obstacles exist. The SEC’s stance on XRP remains unknown, and the outcome of the Ripple-SEC lawsuit could affect sentiment toward an ETF. Moreover, inherent cryptocurrency volatility implies that any ETF wouldn’t guarantee price stability.
While an ETF would be a major development, its long-term impact on XRP depends on resolving regulatory matters and investor sentiment.
