XRP price has been struggling in a bear market, having dropped approximately 22% from its highest level this year. Despite this decline, technical indicators and approaching ETF deadlines suggest a possible rebound may be on the horizon.
Summary
- XRP shows signs of a potential breakout as a falling wedge pattern forms.
- Murrey Math Lines (MML) indicate a potential surge toward $4.2.
- Upcoming XRP ETF approvals are expected to act as a major catalyst.
Murrey Math Lines Suggest XRP Could Rise
Analysis of the daily chart shows that XRP may be preparing for a significant rebound this month. The cryptocurrency has formed a falling wedge pattern, with the two descending trendlines approaching convergence.
Additionally, XRP has settled at a strong pivot-reversal level identified by Murrey Math Lines—a tool that divides price action into an eight-part grid to pinpoint potential support and resistance levels. This level is known for triggering rebounds and coincides with a double-bottom pattern at $2.7167, reinforcing the bullish outlook.
The combination of the double-bottom, falling wedge, and MML support indicates a strong likelihood of a rebound. Should a breakout occur, the first target is the year-to-date high of $3.6512, representing a 30% increase from the current price. The Murrey Math Lines further suggest a potential rise toward $4.29, which would be an extreme overshoot, approximately 55% above the current level. However, a drop below $2.34 would negate this bullish scenario.
XRP ETF Approvals as the Key Catalyst
The upcoming deadlines for XRP ETFs are expected to play a critical role in influencing price movement. Most approvals are anticipated in October, and data from Polymarket indicates that the likelihood of approval exceeds 88%.
This anticipation is likely encouraging investors to accumulate XRP ahead of the potential approvals, expecting significant inflows. Moreover, existing futures-based XRP ETFs are experiencing strong investor demand.
The futures market also reflects growing interest, with open interest for CME contracts rising over the past few weeks. Historical performance of Bitcoin and Ethereum ETFs shows robust inflows since last year, suggesting that investor demand for these types of crypto assets remains strong and supportive of XRP’s bullish outlook.
