XRP optimists forecast a potential surge for the altcoin, possibly pushing its price to a new all-time high (ATH) if the SEC approves an XRP ETF, among other factors. The likelihood of an XRP ETF significantly increased following the conclusion of the long-running case between Ripple and the SEC, with Judge Analisa Torres ruling XRP is not a security.
Tradingview’s data shows XRP’s price surged 30% following the judgment but has since consolidated, pulling back to the $0.56 region after reaching a $0.64 local high. Notably, XRP’s recent price pullback coincided with a significant drop in the decentralized finance (DeFi) total value locked (TVL), suggesting a profit-taking period from investors.
Meanwhile, analysts have spotted market signals that could trigger an XRP rally, especially those supported by the regulatory clarity provided by the recent court judgment. For instance, there is heightened belief among optimistic XRP supporters that the SEC would approve an XRP ETF before the end of 2024. In addition, some of these supporters expect Ripple to launch an Initial Public Offering (IPO) during the same period.
Still, on XRP’s bullish signals, Wells Fargo, an American multinational financial services company, plans to implement XRP for loan payments and settling credit card debts. The development reinforces plans by traditional banks to implement digital currencies. Wells Fargo’s XRP program will allow customers to earn cash-back rewards executed on the XRP Ledger System called CryptoTradingFund (CTF).
Technical indicators also support a potential XRP rally. The Bollinger Bands indicator on XRP’s 4-hour chart hints at a breakout by forming a squeeze, with XRP trading around the lower range of the band. XRP’s price action also reflected a fading selling pressure in the past week, with the price forming higher lows after bouncing off support at the 0.5 Fibonacci level, coinciding with the $0.54555 price for XRP.
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