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Highlights
- XRP price targets a breakout rally towards $3 as Grayscale's ETF with 4.8% XRP allocation received regulatory approval.
- This approval is sparking bullish sentiment around XRP, with traders anticipating a strong gain in price.
- An inverted head and shoulders pattern signals that XRP price may rally to $2.48 before bulls target $3.
XRP price has been trading within a tight range since the beginning of the year, because bullish catalysts that have often driven the altcoin’s price have dried up. However, considering that Grayscale has received the green light to convert its Digital Large Cap Fund that contains XRP into a spot ETF, the traders holding the token are bullish that this may drive an upward rally. As of July 2, XRP was trading at $2.17 with a slight 0.7% decline within 24 hours.
Grayscale Unveils ETF Offering XRP Exposure
As CoinGape reported, digital asset manager Grayscale has received the SEC approval to give institutional investors access to multiple crypto assets, including Bitcoin, Ethereum, Solana, Cardano, and XRP.
Investors will get access to these assets through the Grayscale GDLC Fund, where XRP has an allocation of 4.8%. Despite this being a small allocation, the SEC’s nod in the matter seems to imply that the regulator is no longer deeming the Ripple token to be a security, which is a good thing for the XRP price.
Nate Geraci has stated that this approval marks a “full circle moment” for the XRP token and community, which has been locked in a legal conundrum with the SEC since 2020. With the launch of this ETF containing XRP, investors will get easy access to the token, which was previously not possible due to hindrances posed by the Ripple vs. SEC case.
Bloomberg analyst James Seyffart also noted that another deadline for a similar ETF fund by Bitwise is coming up on July 31. Just like with Grayscale, this fund also has a 4.8% allocation to the Ripple token, and it may trigger an XRP price rally later this month.
Is XRP Price Ready for $3?
The XRP price has created an inverted head and shoulders pattern, which is usually bullish as it suggests that the downtrend does not have enough strength, and a trend reversal might happen.
The height from the tip of the head’s pattern to the key resistance level of $2.17 indicates that a 14% rally to $2.48 might be on the cards for XRP. Getting to this level could prompt buyers to step back into the market, especially with the launch of XRP ETFs, and this could spark a notable rally to the highly anticipated price of $3.
However, there are several barriers to this rally, with the main one being the 50-day SMA level of $2.23 that the XRP price has been unable to cross for nearly two weeks. At the same time, the 200-day moving average of $2.36 has also been serving as a crucial resistance, and if Ripple price continues to trade below it, the rally above the $2.17 resistance might not be sustainable.
Nevertheless, the recent ETF news might bring back whales into the XRP market after a CoinGape analysis revealed that Ripple whales have sold 560 million tokens within two weeks. If whales return, this may be the key driver that influences an upward trend towards $3.
In summary, the XRP price might be on the verge of a swing upwards after the SEC approval of the Grayscale digital fund that gives investors access to multiple crypto assets, including XRP. Besides this, Ripple token has also created an inverse head and shoulders pattern that signals the likelihood of a 14% rally to $2.48 happening.
Frequently Asked Questions (FAQs)
1. Can XRP price rally after Grayscale’s ETF received regulatory approval?
2. Is XRP ripe for a rally past $3?
3. Why is XRP not gaining despite Grayscale’s ETF approval?
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