XRP Price Forecast: ETF Approval and Bullish Chart May Send XRP to New Records

The appointment of Paul Atkins as the new Chairman of the U.S. Securities and Exchange Commission (SEC) has paved the way for a new era of regulatory clarity for the crypto industry.

The agency has already taken down its appeals against Ripple and XRP has seen its price performance improve as a result.

Moreover, the market’s sentiment has shifted from extremely bearish to moderately bullish in just a month as reflected by the behavior of the Fear and Greed Index.

Market Cap of RLUSD Rises to $300M

Ripple has also made some interesting moves this year like the launch of Ripple USD (RLUSD) – the blockchain’s first native stablecoin.

The market cap of this new stablecoin has jumped from $50 to $300 million just a few months after its launch as it has been embraced by top exchanges like Kraken already.

Meanwhile, the SEC will make a decision next month on what could be the first XRP-linked exchange-traded fund (ETF) to hit the market.

The Franklin XRP Fund received a notice of “longer period” from the Commission in late April. This means that the SEC can take up to 90 days to decide if this proposed vehicle can be listed on the Cboe BZX Exchanges as intended.

The deadline in this case is set at June 17, at which point the agency “shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.”

The approval of an XRP-linked spot ETF could result in significant capital inflows for the token, which supports a bullish short-term outlook.

Retail interest in XRP is quite high as indicated by Google search volumes. XRP is one of the most heavily searched crypto-related keywords and far exceeds the public’s interest in Bitcoin based on these metrics.

Hence, an ETF linked to the token, which is a vehicle that makes it easier for both retail and institutional investors to get exposure to the asset, will likely result in significant liquidity coming its way.

XRP Needs a Clean Break Above $2.8

XRP’s daily chart shows a bullish breakout above the 21-day exponential moving average (EMA) on May 8 that has been followed by 4 out of 6 winning sessions for the token.

Both the 21-day and 200-day EMAs are on an uptrend and the trend’s strength is high as indicated by the Relative Strength Index (RSI), whose value is approaching ‘overbought’ levels.

Meanwhile, the MACD’s histogram has been trending higher for the past week and trading volumes recently have been either at or above the 14-day average.

XRP broke out of its descending price channel and has already pushed through its nearest lower high, meaning that the downtrend has been successfully reversed. Hence, the token’s outlook is bullish and its next target could be the $3.2 area.

Currently, XRP hit a key volumetric resistance at $2.8. Trading volumes at this level have been strong throughout the year. Hence, bulls need to capture this area to keep the rally going.

The next high-volume zone is exactly at $3.2. Hence, a bullish breakout above this current resistance could lead to a big push to that target and to all-time highs next if the rally keeps going.