XRP is still in a downtrend as whale and investor optimism wanes after Ripple's Executive Chairman, Chris Larsen, began taking profits.

Although analysts predict that the price of XRP will reach between $5 and $10, the recovery momentum remains limited and has not generated an upward trend. Technical charts and indicators have weakened as the price fell 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 Stimulating Price Recovery

The price of XRP could still recover after continuous market fluctuations and profit-taking by whale investors and retail investors. The following four factors could lead to a recovery, paving the way for a new ATH.

1. Approval of XRP ETF

Last week, the U.S. Securities and Exchange Commission (SEC) extended the review period to approve the XRP exchange-traded fund (ETF).

The SEC has set October 18 as the final decision date for Grayscale's ETF application.

Decisions regarding Canary, CoinShares, 21Shares, Bitwise, and other issuers will be made on October 22 or 23.

However, this agency can approve all ETF applications on the same day, thereby triggering a recovery in XRP prices.

2. Decision of the U.S. Federal Banking Regulatory Office on Ripple's Application

Ripple submitted a national bank charter application to the U.S. 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 a decision regarding Ripple's national bank charter could be made by the end of October.

If approved, Ripple's stablecoin (RLUSD) will be supervised by both state and federal agencies, thereby enhancing institutional trust in this stablecoin. This becomes important after the GENIUS Act was passed.

3. XRP Price Recovers After Whale Capital Flows Turn Positive

According to The Coin Republic, capital inflows into XRP have turned negative amid large sell-offs by whales after Chris Larsen sold millions of dollars worth of XRP.

The potential price volatility of XRP may remain weak structurally until whale cash flows turn positive. Additionally, whales continue to sell amid a profit-taking and uncertain market.

4. The Actual Interest Rate of XRP

The expected interest rate cut by the U.S. Federal Reserve in September remains the most crucial factor for the cryptocurrency market in general, as traders are closely watching for a recovery in XRP prices.

As of the time of writing, the price of XRP is trading down 4% at $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.

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