Cryptocurrency investors are discussing the possibility of Ripple
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2‘s XRP experiencing a historical price explosion this year. The growing optimism around the approval of an exchange-traded fund (ETF) based on XRP in the U.S. underpins this expectation. According to Bloomberg analyst Eric Balchunas, the likelihood of the XRP ETF receiving approval has now risen to 85%. Leadership changes at the SEC play a crucial role in this increased confidence.
Why is XRP ETF Approval So Crucial?
The XRP ETF could facilitate institutional investors’ access to this altcoin through traditional financial means, injecting billions of dollars in new capital into the market. The Bitcoin
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95,212 ETFs approved at the beginning of 2024 saw a net inflow of approximately $39 billion. Even if XRP ETFs draw only 15% to 30% of this volume, the effect on the price would be significant.
For instance, a 15% share would mean a $5.85 billion capital inflow into XRP, and in this scenario, the price could rise from $2.22 to $12.23, a 450% increase. If a 30% share is drawn, XRP could reach $22.20, resulting in a surge of up to 900%.
Platforms like Polymarket also show rapidly increasing odds for XRP ETF approval. Last week, the probability was 68%, but this week it jumped to 80%. Giant investment firms like Bitwise, WisdomTree, and Franklin Templeton have already submitted their applications. The SEC is expected to announce its decision on Franklin Templeton’s application by June 17. Industry experts believe that approval is now just a matter of time.
Short and Long-term Price Targets for XRP Coin
Although XRP’s price has dropped by 5% recently, the technical outlook signals positive trends. If it can maintain support at $2.20 and surpass $2.40, a rally up to $3.74 is possible. The range between $2.80 and $3.00 is regarded as strong resistance. Breaching these levels could propel XRP into a new strong upward trend.
Popular analyst Dark Defender views the recent drop as part of a larger bullish formation. Another analyst, Allincrypto, forecasts that XRP could rise to $19.27 in the long term. The level of $2.36, tested in April, could be a short-term target. Growing institutional interest and ETF approval expectations bolster the altcoin’s current position.
However, weak economic data and uncertainties from the U.S. continue to pressure the price. Nonetheless, attention is primarily focused on the SEC’s impending ETF decision rather than macroeconomic data. Should approval be granted, XRP might undergo a parabolic rally similar to Bitcoin’s post-ETF approval.
