The potential approval of an XRP ETF is looking more likely, which is bullish for the XRP price. Although XR hasn’t reacted positively to the recent ETF news, this fund could contribute to the projected rallies for the crypto.
How Will An XRP ETF Impact The XRP Price
An XRP ETF is undoubtedly a positive for the XRP price, as it will drive institutional funds into the XRP ecosystem, which could lead to a massive surge for the crypto. In fact, approval of the pending ETF applications could be one of the catalysts for XRP’s projected rallies in this market cycle.
Crypto analyst Dark Defender recently predicted that the XRP price could rally to $8 if it holds the crucial support level at $3. However, from a fundamental standpoint, approval of an XRP ETF could be what drives XRP to this price target.
It is worth mentioning the impact that the Spot Bitcoin ETFs had on the Bitcoin price, as it rallied to a new all-time high (ATH) a few months after the BTC ETFs launched.
Similarly, the XRP price could rally to a new ATH and even reach this $8 price target if the XRP ETFs eventually launch. Meanwhile, there is also the possibility of the crypto rallying to as high as $27 in this market cycle.
Crypto analyst Egrag Crypto recently revealed that the crypto was mirroring its 2017 pattern. Based on this, the analyst predicted that XRP could rally to $27 from its current level.
Situation Of Things
Six asset managers, Bitwise, Canary Capital, Grayscale, WisdomTree, REX Shares, and 21Shares, have all filed to offer an XRP ETF. The CBOE BZX Exchange recently filed 19b-4s with the US SEC to list and trade XRP ETFs offered by Bitwise, Canary Capital, 21Shares, and WisdomTree.
Despite this development, the XRP price failed to rally, which sparked a bearish sentiment among some market participants. However, it is worth mentioning that the bearish outlook around the crypto’s price is due to the bearish sentiment in the broader crypto market. The Bitcoin price dropped to as low as $91,000 earlier this week, dragging altcoins like XRP down alongside it.
Despite this development, crypto analyst Mikybull Crypto asserted in an X post that it is hard to be bearish on XRP at its current price levels. Based on his accompanying chart, the crypto could still rally to as high as $7 in this market cycle.
Factors like the approval of an XRP ETF are bound to contribute to this projected price rally. Meanwhile, there is a high likelihood that the SEC will approve these funds under the new administration.
The Commission has shown its willingness to create a more regulatory environment by creating a crypto task force aimed at providing regulatory clarity. Additionally, the SEC recently reassigned its head crypto litigator, Jorge Tenreiro, hinting that the agency may be about to ease off on its crypto enforcement actions.
Other Positives For XRP
Besides the potential approval of the XRP ETFs, other fundamentals paint a bullish picture for the XRP price. As CoinGape reported, Ripple whales have been actively accumulating, recently buying 520 million coins amid the downtrend.
According to the New York Post, Ripple CEO Brad Garlinghouse has emerged as a top contender for a seat on the US Crypto Advisory Council, which is bullish for XRP, given the crypto’s ties to Ripple.
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