XRP Price Prediction: XRP Recovers to $3 Despite SEC’s Decision to Postpone ETF Listings

The United States Securities and Exchange (SEC) has postponed once again its decision on three applications to list a spot exchange-traded fund (ETF) for XRP (XRP).

The deadline to make a decision on these investment vehicles has now been moved to October this year shortly after the agency approved a spot ETF with a staking feature for Solana (SOL).

Grayscale, Canary Capital, 21Shares, CoinShares, and Bitwise have all submitted applications to list an XRP-linked spot vehicle that would finally allow both retail and institutional investors to buy the token via the regulated U.S. stock market.

This is a temporary setback for these asset management firms and for the Ripple community and may have been the catalyst that XRP needed to stay above the $3 level at a point when the market is taking a breather from its recent rally.

Altcoin Season Has Started Already?

In the past 24 hours, XRP has gone down by 0.7%. However, trading volumes have exploded by 125% as the token once again hit this psychological threshold.

XRP hit a session low of $2.95 and started to recover right after during the Asian session. The American session kept pushing the cryptocurrency higher and now sits at $3.07.

The native asset of the Ripple network remains the top-performing token in the top 5 this year with a 42.6% gain, followed by Ethereum (ETH), whose surprising and remarkable recovery turned a 50% YTD loss into a 28.2% gain at the time of writing.

Dominance Chart (BTC and ETH) – Source: CoinMarketCap

Bitcoin (BTC) just made a new all-time high after climbing above the $124,000 level while ETH pushed through a long-dated resistance at $4,100. ETH’s rise along with BNB Coin’s push to a new all-time high and Solana’s move above $200 are considered strong signs that altcoin season has started.

Now that Ripple has gotten rid of its legal issues, this token could keep rallying despite this latest pullback. The regulatory environment has improved dramatically and it is now not a matter of if but when an XRP spot ETF will be approved.

The odds that such a vehicle will receive the SEC’s nod in October are quite high and that would set the stage for a major run, especially as President Donald Trump has vowed to allow 401(k) accounts to invest in cryptos.

These accounts hold an estimated $8 trillion worth of assets. Once an XRP spot ETF is listed, even if a tiny percentage of those funds is moved toward those vehicles, it could result in a significant liquidity boost for Ripple’s native asset.

XRP Pulls Bear Trap But Could Still Drop to $2.75

This positive outlook does not necessarily mean that XRP can’t drop to lower levels. The 4-hour chart shows that the price action broke below the 200-period exponential moving average (EMA) during today’s session.

XRP/USD 4-Hour Chart (Binance) – Source: TradingView

The $3 area remains the key level to watch. If the price fails to climb above this mark after this retest from below, the odds favor a much deeper correction, possibly to the $2.75 area.

That would provide late buyers with a highly attractive entry and liquidity will likely increase at those levels. The market seems to be chasing these late entries at this point to find the necessary fuel to reach much higher prices.

Market conditions are quite favorable, sentiment is bullish, regulations are now favoring the crypto industry’s growth, and Ripple has ambitious plans to become the world’s leading decentralized digital payments platform.

A move to $4 seems attainable during this cycle, meaning that XRP offers a 33% upside potential at this level. Time to buy the dip?