The XRP price has found support above $0.50 after a period of volatility. This recent stability coincides with positive developments for Ethereum, which could pave the way for an XRP exchange-traded fund (ETF) in the future. However, the ongoing legal dispute between Ripple and the SEC casts a shadow of uncertainty over XRP’s near-term prospects.
XRP Price Responds to Ethereum ETF Optimism
Following weeks of price corrections, the cryptocurrency market experienced a surge in value last week. Favorable economic data fueled an initial climb that saw XRP reclaim the $0.50 support level.
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A minor weekend correction due to profit-taking presented an opportunity for new investors to enter the market. This buying pressure helped propel XRP to $0.54 on Monday.
This positive momentum was further bolstered by news surrounding the potential approval of spot Ethereum ETFs, which have now been officially approved by the SEC.
XRP ETF: A Realistic Possibility?
The January approval of the first spot Bitcoin ETF sparked renewed interest in the potential for Ethereum ETFs. Several investment firms actively pursued launching these products. However, discussions regarding a spot ETF for XRP, the second-largest cryptocurrency, had dwindled in recent months due to limited communication between the SEC and ETF applicants.
This week, however, Bloomberg analysts, including Eric Balchunas, suggest growing political involvement has significantly increased the chances of Ether ETF approval. If approved, this would be a significant step forward for the cryptocurrency industry, potentially reigniting speculation about a potential XRP ETF.
Ripple vs. SEC Lawsuit: A Major Hurdle
Despite the approval of Ethereum ETFs to pave the way for an XRP ETF, the ongoing legal battle between Ripple and the SEC remains a significant obstacle.
Although a July court ruling determined that secondary sales of XRP do not constitute securities, Ripple still faces legal challenges regarding its direct sales to institutional investors. Recent developments include the SEC filing an objection to Ripple’s motion to seal sensitive documents from public view.
The judge’s decision on the next steps in the lawsuit will be closely watched by investors. A win for Ripple could significantly increase the possibility of a spot XRP ETF. Conversely, an SEC victory might lead investors to shift their focus towards alternative cryptocurrencies.
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Read Also: Here Is Likely Timeline For XRP Spot ETF
XRP Price Analysis: Bullish Signs Despite Volatility
Despite recent volatility, XRP has remained above its 20-day exponential moving average (EMA), indicating a potentially bullish outlook. Technical indicators suggest a possible breakout towards the $1 mark in the coming weeks. A daily close above the 50-day EMA could further solidify this bullish structure.
For the long-term uptrend to be validated, XRP must overcome key resistance levels at $0.60, $0.70, and $0.80.
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