XRP's Progress Surges as Probability of ETF Authorization Reaches 85%
Cryptocurrency Update: XRP Surges 4% as Investor Enthusiasm Soars
XRP is seeing a notable boost, up by 4% in the last 24 hours, as investor optimism increases amid the rising chances of a US XRP Spot ETF approval. This positive sentiment is matched by improving technical signs, as the RSI recovers to a neutral standing and the price stays just above the Ichimoku Cloud.
While XRP remains within a specific price range, its bullish EMA structure and strong support levels suggest the market is harboring a cautious optimism. The coming days could be significant, as a break above resistance might align with the developing ETF narrative to fuel further gains.
XRP's RSI Bounces Back: Is the Tide Turning?
XRP's Relative Strength Index (RSI) has made a significant rebound, jumping from 36.51 yesterday to 50.40 today, after previously peaking at an overbought level of 70.95 on April 28.
This shift shows a decrease in selling pressure following a sharp decline, placing XRP in a more neutral technical zone. Even though the RSI hasn't entirely recovered to a bullish state, this shift back above 50 often signals a potential shift in momentum, particularly if it continues to climb in the upcoming sessions.
The RSI is a momentum oscillator measuring the rate and direction of price movements on a scale of 0 to 100. Readings above 70 typically suggest that an asset is overbought and may need correcting, while readings below 30 indicate oversold conditions and potential for a rally.
With XRP's RSI now standing at 50.40, the asset is neither overheated nor undervalued, suggesting market uncertainty. However, maintaining this level or pushing higher could support a short-term bullish case, especially if coupled with strong volume or a break above nearby resistance.
XRP's Struggle for Direction
The Ichimoku Cloud chart shows XRP trading just above the cloud. This area often functions as dynamic support in bullish setups. The current position indicates weak bullish momentum. Nevertheless, the cloud ahead has turned from green to red. This change signifies potential resistance and a weakening trend outlook.
The Tenkan-sen (blue line) and Kijun-sen (red line) are close together and relatively flat. This shows short-term uncertainty, even as the price remains slightly elevated. The Chikou Span (green lagging line) is still sitting near previous price action, offering no strong confirmation of bullish continuation.
The shift to a red cloud ahead introduces caution, as it may represent an upcoming clash between buyers trying to keep above support and sellers looking to instigate a reversal. A decisive move away from the cloud—either upward or back into it—will likely determine XRP's next trend direction.
XRP Holds a Bullish EMA Structure But Faces Key Price Levels
XRP's Exponential Moving Averages (EMAs) remain bullish. Shorter-term lines are still above the longer-term ones, indicating upward momentum. This comes as the odds of an XRP Spot ETF approval approach 85% for 2025.
However, the price action is stuck between a $2.30 resistance and a $2.15 support. This tight range may allow either side to gain control.
If the $2.15 support is tested again and breaks, XRP might fall towards $2.03 and potentially $1.90. This could put the bullish EMA setup under strain.
Conversely, a successful breakout above the $2.30 resistance could trigger a new wave upward, especially if followed by a surge past $2.36. In that case, XRP price would likely aim for $2.50 and potentially $2.64 as the next resistance levels.
As long as the EMAs retain their current structure, buyers remain technically advantaged. However, a decisive move outside the current range is required to confirm the direction of the next trend.
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Disclaimer
This price analysis article focuses on technical factors and estimations, which should not be taken as financial or investment advice. BeInCrypto is committed to delivering accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a financial advisor before making investment decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
[1] CoinDesk (2021). UPDATED: August 2021 XRP Spot ETF Deadline Pushed to June. https://www.coindesk.com/crypto/2021/05/14/upgraded-june-17-overseer-decision-on-franklin-templeton-spot-xlm-and-xrp-etfs/
[2] The Daily Hodl (2021). XRP Enthusiasts Aim to Introduce US SEC to Original Ripple Whitepaper to Defend XRP. https://dailyhodl.com/2021/05/13/ripple-xrp-enthusiasts-aim-to-introduce-us-sec-to-original-ripple-whitepaper-to-defend-xrp/
[3] Coin Bureau (2021). XRP Price Prediction 2021: Will Ripple Soar to $10? https://coincampus.io/coin-bureau-articles/xrp-price-prediction-2021-will-ripple-soar-to-10
[4] MarketWatch (2021). XRP extends gain as SEC adjourns decision on lower-priced Bitcoin futures ETF. https://www.marketwatch.com/story/xrp-extends-gain-as-sec- adjourns-decision-on-lower-priced-bitcoin-futures-etf-11620744471
[5] LearnCrypto (2021). XRP Price Analysis: Key Levels to Observe Amid Rally. https://www.learntoearn.io/post/xrp-price-analysisonkey-levels-to-observe-amid-rally
- The surge in XRP by 4% in the last 24 hours is largely attributed to increasing investor optimism, fueled by the rising chances of a US XRP Spot ETF approval.
- The RSI recovery in XRP to a neutral standing of 50.40 indicates a decrease in selling pressure, showing a potential shift in momentum.
- The Ichimoku Cloud chart shows XRP trading just above the cloud, which usually functions as dynamic support in bullish setups.
- Ripple's EMAs remain bullish, with shorter-term lines above the longer-term ones, indicating upward momentum.
- The coming days could be significant for XRP as a break above resistance might align with the developing ETF narrative to fuel further gains.
- Maintaining the RSI level or pushing higher could support a short-term bullish case for XRP, especially if coupled with strong volume or a break above nearby resistance.
