According to Cointelegraph, XRP is showing signs of a potential rally as it forms a bull flag pattern on the daily chart, a technical indicator often associated with strong bullish momentum. The cryptocurrency is currently facing resistance at the upper trendline of the bull flag, positioned at $3. A successful breakout above this level could pave the way for XRP to reach its target of $5, marking a 77% increase from its current price. However, the path to this target is not without challenges. Bulls must first overcome resistance from the 50-day simple moving average (SMA) at $3.08, which has been a barrier since August 24. Additional resistance levels are noted at $3.40 and the multi-year high of $3.66, achieved on July 18. On the downside, key support zones lie between the 100-day SMA at $2.68 and the 200-day SMA at $2.48. Maintaining the price above these levels is crucial to sustaining the bull flag setup.
In related developments, the U.S. Securities and Exchange Commission (SEC) is approaching decision deadlines for several spot XRP exchange-traded fund (ETF) applications. These deadlines span from October 18 to November 14, with the Franklin Templeton XRP ETF decision due on the latter date. Following Ripple's 2024 legal victory, which clarified XRP's non-security status, approximately 11 proposals are under review. Market sentiment is optimistic, with betting odds for an XRP ETF approval by December 31 reaching 87% on Polymarket, up from 64% on August 6. Nate Geraci, head of the ETF Store, expressed confidence in the approval, suggesting the odds are nearly certain. Bloomberg's senior ETF analyst Eric Balchunas estimates a 95% probability of approval, attributing this to regulatory clarity and changes in SEC leadership. Approval could potentially unlock significant institutional capital, increasing demand for XRP tokens and possibly driving prices to $10-$20, with some analysts forecasting even higher values if major players like BlackRock enter the market. This article does not provide investment advice, and readers are encouraged to conduct their own research before making investment decisions.
