XRP price surges 6% after US SEC clears ProShares ETF

XRP (XRP) saw a significant price increase of 7% on April 28, attributed to the recent approval by the US Securities and Exchange Commission (SEC) of ProShares Trust’s proposal to introduce three XRP futures-based exchange-traded funds (ETFs) on April 30. Currently trading at $2.34, XRP has experienced a 10% surge over the past week, with a notable 132% spike in trading volume, indicating heightened demand and market activity.

ProShares’ upcoming launch of three new futures-based XRP ETFs, namely Ultra XRP ETF, Short XRP ETF, and Ultra Short XRP ETF, marks a milestone in the investment realm. These ETFs aim to provide investors with diverse strategies to engage with XRP’s price movements without directly holding the asset. The Ultra XRP ETF offers 2x leveraged exposure, doubling the daily returns of XRP, while the Short and Ultra Short ETFs allow investors to capitalize on price declines with 1x and 2x inverse leverage, respectively. Through futures contracts and swap agreements, these funds cater to both bullish and bearish traders.

The recent SEC approval of ProShares’ XRP ETFs signals a shift towards a more favorable regulatory environment for cryptocurrencies under the current administration. This development follows Teucrium’s successful launch of the first US XRP futures ETF in April, which garnered over $5 million in trading volume on its debut day. With several XRP spot ETF applications pending approval, including one from fund manager Grayscale facing a critical May 22 deadline, the future looks promising for XRP-focused investment vehicles.

Ripple’s legal victory over the SEC in March further fueled market optimism surrounding XRP by clarifying its ‘security’ status and removing significant regulatory barriers. The recent uptrend in XRP’s price validated a falling wedge pattern on the daily chart, suggesting a bullish reversal. Falling wedge patterns, indicative of a downtrend reversal, feature converging downward-sloping trend lines, signaling diminishing selling pressure and an impending price upswing. XRP’s breakout above the wedge’s upper trendline around $2.08 forecasts a new rally, with a potential upside target near $4.00 if it surpasses the 200-day simple moving average at $2.41.

The relative strength index (RSI) surged from 31 on April 8 to 62 currently, indicating an increasing bullish momentum. Failure to breach the 200-day SMA could signal a lack of buyers’ ability to sustain the recovery. Key support levels to monitor on the downside include the 50-day SMA at $2.16 and the psychological level at $2.00, where the upper trendline and the 100-day SMA intersect.

In conclusion, XRP’s recent price surge, driven by the SEC approval of ProShares’ XRP ETFs and the validation of a bullish reversal pattern, paints an optimistic outlook for the cryptocurrency. With the introduction of diverse investment vehicles and a supportive regulatory landscape, XRP appears poised for mainstream adoption and continued market growth.