XRP remains in a downtrend as whale and investor optimism weakens after Ripple's executive chairman Chris Larsen began taking profits.
Although analysts predict the price of XRP at $5 to $10, the recovery momentum remains limited and has not generated upward momentum. Technical charts and indicators have weakened as the price dropped below $3 twice.
However, the latest news surrounding XRP indicates that investors expect the price to recover in the near future.
XRP News: 4 Factors Driving Price Recovery
The price of XRP could still recover after ongoing market volatility and profit-taking by whale investors and retail investors. The following 4 factors could lead to a recovery, setting the stage for a new ATH.
Approval of XRP ETF
Last week, the US Securities and Exchange Commission (SEC) extended the review period for approving the spot XRP exchange-traded fund (ETF).
The SEC has set October 18 as the final decision date for Grayscale's ETF application.
Decisions on Canary, CoinShares, 21Shares, Bitwise, and other issuers will be made on October 22 or 23.
However, the agency may approve all ETF applications on the same day, which would trigger a recovery in XRP prices.
Furthermore, ETF expert Nate Geraci stated that a wave of spot cryptocurrency ETFs could open up in the next two months.
All attention is focused on the XRP, Solana, and Litecoin ETFs, with a full regulatory framework for spot cryptocurrency ETFs.
The Decision of the US OCC Regarding Ripple's National Bank Charter Application
Ripple applied for a national bank charter with the US Office of the Comptroller of the Currency (OCC) in July.
The OCC must decide on the application within 180 days, unless an extension is needed.
Bill Morgan, a prominent lawyer in the XRP community, hopes that the decision on Ripple's national bank charter could be made by the end of October.
He also predicts that the SEC's decision on the XRP ETF could be made around the same time in October.
If approved, the Ripple USD stablecoin (RLUSD) will be supervised by both state and federal authorities, thereby enhancing institutional trust in this stablecoin. This becomes crucial after the GENIUS Act is passed.
XRP Price Recovers After Whale Flow Turns Positive
According to The Coin Republic, the capital flow into XRP has turned negative amid massive sell-offs by whales after Chris Larsen sold millions of dollars worth of XRP.
XRP price volatility may remain structurally weak until whale money flow turns positive. In addition, whales continue to sell amidst a profit-taking market and uncertainty.
Notably, analysts like Ali Martinez, Dark Defender, and ChartingGuy have predicted that the price of XRP will reach $10.
However, the bearish double top pattern forming on the daily timeframe has caused the price of XRP to continue declining.
Ali Martinez revealed on August 20 that whales sold over 470 million XRP in the past 10 days.
Glassnode further noted that XRP is witnessing strong distribution similar to the price surge in December 2024, making whale accumulation crucial for XRP's price recovery.
The Federal Reserve of the United States Cuts Interest Rates in September
The Fed's expected interest rate cuts in September remain the most significant catalyst for the cryptocurrency market in general, as traders are eyeing a recovery in XRP prices.
The Federal Reserve of the United States (Fed) will rely on its preferred inflation measure, PCE inflation data, to continue cutting interest rates. As The Coin Republic reported earlier, traders have become cautious after US PPI inflation rose 0.9% in July, bringing core PPI inflation to 3.7%.
At the time of writing, CME's FedWatch tool shows that the likelihood of the Fed cutting interest rates by 0.25 basis points in September is over 85%. Meanwhile, President Donald Trump and his administration are pushing for stronger interest rate cuts.
At the time of writing, the price of XRP is trading down 4% to $2.88. The 24-hour low and high are $2.85 and $3.02, respectively. Trading volume has increased by 11% in the past 24 hours.
