Key Takeaways
- An XRP futures Exchange-Traded Fund (ETF) will go live on April 30.
- The XRP price broke out from a long-term descending wedge pattern.
- Can XRP sustain its ETF-fueled momentum and reach new highs?
The XRP price spiked this week following some extremely positive news. According to numerous crypto KOLs , the Securities and Exchange Commission (SEC) has approved a futures ETF for XRP, which will go live on April 30.
The first ETF to go live will likely be ProShares , offering different investment strategies.
Historically, crypto assets that received the green light for futures ETFs eventually got spot ETFs. Bitcoin (BTC) got a futures ETF in 2021 and a spot one in 2024.
With that in mind, let’s analyze the XRP price action and see how much fuel the XRP price has left in its upward movement.
XRP Price Breaks Out
The daily time frame XRP analysis shows that the price has increased since falling to a low of $1.61 on April 7 (green icon).
During the upward movement, XRP reclaimed the $2.05 horizontal resistance area and broke out from a descending wedge.
The wedge breakout was significant since the pattern had existed since the cycle high in December.
Therefore, its breakout is a sign that the correction is over. The next resistance is at $2.60.
Technical indicators support the breakout. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are increasing.
The RSI is above 50 while the MACD is positive, both signs of a bullish trend.
Therefore, the daily time frame suggests the XRP price will continue increasing toward the next resistance at $2.60.
Local High Close?
While the daily time frame XRP analysis is bullish, the short-term four-hour one shows weakness in the wave count and indicator readings.
The wave count shows a five-wave upward movement since the April lows, which is developing into a leading diagonal.
While it is unclear if another short-term high will occur, the XRP price has created an ascending wedge, from which a breakdown is likely.
If one happens, XRP will return to the 0.5 Fibonacci retracement support level at $1.99.
The bearish divergences in the RSI and MACD (orange) support this bearish short-term possibility.
ETF News Fuel XRP Rally
The XRP price reached its third successive high in April, fueled by positive news about the SEC’s approval of a futures ETF.
While the long-term XRP trend is bullish, a short-term decline may occur before the price increases again.
A retest of the $2.05 horizontal and Fibonacci support could be on the cards before more upside.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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