XRP News Today: Token Rebounds as $1B Treasury Plan Meets ETF Uncertainty

XRP Snaps Four-Day Losing Streak: Downside Risks Linger

XRP snapped a four-day losing streak on Saturday, October 18, as Ripple Labs announced plans to establish a new digital-asset treasury.

Ripple Labs is reportedly planning to lead a capital raise exceeding $1 billion to establish an XRP-focused digital asset treasury (DAT) structure. Tightening XRP supply could deliver greater price stability. Greater price stability may strengthen corporate interest in Ripple’s payment platforms and XRP.

Nate Geraci, President at NovaDius Wealth Management, shared the news, stating:

“Ripple leading effort to raise at least $1bil to accumulate xrp… New xrp-focused DAT.”

Prominent crypto commentator Ripple Bull Winkle, with over 125,000 followers on X (formerly Twitter), commented on Geraci’s post, stating:

“This moment will go down in XRP history – The repricing has Already started.”

However, XRP failed to break above the crucial $2.4 level despite the news. Traders are likely waiting for more concrete details. Meanwhile, the US government shutdown remained an headwind, capping gains.

US Government Shutdown Leaves XRP-Spot ETF Launches on Ice

The prolonged US government shutdown continued to weigh on demand for XRP. Hopes for an October launch of XRP-spot ETFs have evaporated. The US government shutdown extended to 19 days, with the next US Senate vote on a stopgap funding bill likely on Monday, October 20.

However, the tenth US Senate vote on Friday, October 17, suggested the stalemate could continue. The shutdown has left the SEC with a skeleton staff and delayed reviews and approvals. Uncertainty about the timing of XRP-spot ETF launches and institutional money inflows has contributed to October losses. XRP has tumbled 17% in October.

A Senate vote passing a stopgap funding bill could fuel expectations of an XRP-spot ETF launch, potentially boosting demand for XRP.

Strong institutional demand, combined with Ripple Labs’ plans for a DAT, could trigger the next XRP bull run.

Price Action & Technical Analysis: Will XRP Hold $2.3?

XRP rose 2.97% on Saturday, October 18, reversing the previous day’s 1.51% loss to close at $2.3622. The token outperformed the broader crypto market, which gained 1.07%, but remained below the 50-day and 200-day Exponential Moving Averages (EMAs), reaffirming a bearish bias.

Key technical levels to watch include:

• Support levels: $2.3, $2.0, and $1.9.
• Technical resistance levels: the 200-day EMA at $2.6203 and the 50-day EMA at $2.7569.
• Resistance levels: $2.4, $2.7, and $3.0.

Catalysts & Scenarios

In the coming sessions, several key events could dictate near-term price trends:

• US-China trade talks.
• The US government shutdown.
• XRP-spot ETFs (delays or launches) and BlackRock’s position on an iShares XRP Trust.
• Blue-chip companies’ demand for XRP as a treasury reserve asset.
• Regulatory milestones: Ripple’s application for a US-chartered bank license, the Market Structure Bill, and SWIFT-related news could also drive near-term price trends.

Bearish Scenario: Risks Below $2.3

• BlackRock downplays plans for an XRP-spot ETF.
• US Senate stalemate continues, further delaying XRP-spot ETF approvals.
• The US Senate rejects crypto-friendly legislation, including the Market Structure Bill.
• Blue-chip companies dismiss XRP as a treasury reserve asset.
• OCC delays or rejects Ripple’s US-chartered bank license.
• SWIFT maintains dominance in the global remittance market, capping Ripple’s market access.

These bearish scenarios could push XRP back toward $2.3. A break below $2.3 may enable the bears to target the $2.0 psychological support level.

Bullish Scenario: Path to $3

• The US and China reach a trade deal.
• US Senate passes a stopgap funding bill.
• BlackRock files an S-1 for an iShares XRP Trust, and the SEC approves spot ETFs.
• Blue-chip companies purchase XRP for treasury purposes, and more firms adopt Ripple technology.
• Ripple secures a US-chartered bank license, and the Senate passes the Market Structure Bill.
• Ripple sees increased XRPL adoption on Main Street, weakening SWIFT’s market dominance.

These bullish scenarios could drive the token above $2.4, putting $2.7 into play. A break above $2.7 would support a move toward $3.0.

Headwinds and Uncertainty

The price outlook hinges on the US government shutdown and the timelines for spot ETF launches. However, growing demand for XRP as a treasury reserve asset could deliver crucial price support.

The token could retarget the $3.0 handle if the US Senate passes a stopgap funding bill. The token could hit new highs if the Fed cuts rates and the US Senate passes the Market Structure Bill.

Final Thoughts

All eyes are on Capitol Hill, where Monday’s vote could dictate whether the token reclaims $3 or resumes its drop toward $2.

Traders should closely monitor Capitol Hill and Fed commentary.