The XRP price has pulled back in the past few months, moving from the year-to-date high of $3.6655 on July 22nd to the current $2.8745. This pullback could be the calm before the storm before the coin rebounds in the coming weeks.
XRP price technical analysis points to a strong surge
The daily timeframe chart shows that the XRP price bottomed at $1.6075 in April when Donald Trump launched his trade war. It then staged a slow rebound, ultimately reaching its all-time high of $3.6655 in July.
The XRP price has now pulled back, moving to below the key support level at $3. A closer look shows that it has formed a descending channel, which is part of the handle section of the cup-and-handle pattern. C&H is one of the most common bullish continuation signs in technical analysis.
XRP price has also formed a bullish flag pattern that closely resembles a hoisted flag in that it has a vertical line and descending channel.
While the XRP price has moved below the Ichimoku cloud, it remains above the 100-day and 200-day Exponential Moving Averages.
Most importantly, there are signs that the XRP price has moved into the second phase of the Elliot Wave pattern. This phase is usually a reversal after the start of a bullish breakout, and it normally bottoms at around the 61.8% Fibonacci Retracement level.
Therefore, the combination of the bullish flag, falling wedge, cup and handle, and Elliot Wave pattern points to more gains in the coming weeks.
XRP ETF approval to boost its price
The main catalyst for the XRP price is that the deadlines for multiple spot ETFs is nearing. Data shows that the deadline for most of them will come in mid October.
Polymarket data shows that the odds of these ETFs being approved has jumped to over 95%. The SEC’s guidance for future crypto ETFs shows that those with regulated Coinbase futures funds, including XRP will receive an expedited approval process.
An XRP ETF approval will be a highly bullish catalyst for the coin because analysts expect these funds to have robust inflows, with JPMorgan analysts predicting as high as $8 billion in the first year.
A good example of this is the recently launched REX-Osprey XRP ETF, which has accumulated $27 million in assets in just three trading days. This growth is notable because of its substantial expense ratio of 0.75% and the fact that it uses a less popular Act. 40 approach.
The Teucrium 2x Long Daily XRP ETF, which was launched in April, has gained over $387 million in assets, while the ProShares XRP ETF has gained over $104 million.
XRP Ledger ecosystem growth
Meanwhile, the XRP price will benefit from the ongoing ecosystem growth. For example, data shows that the XRP Ledger has become the tenth biggest player in the real-world asset tokenization industry with over $295 million.
Similarly, Ripple now runs one of the biggest stablecoin in the industry as the Ripple USD (RLUSD) has accumulated over $741 million in assets. Its daily volume of over $200 million is much higher than other stablecoins.
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