According to Cointelegraph, XRP is showing signs of a potential bullish reversal, with a falling wedge pattern on its daily chart suggesting a possible 48% price surge. This technical setup, combined with the U.S. Securities and Exchange Commission's (SEC) review of WisdomTree's spot XRP ETF application, could signal the beginning of a rally to $3.40 and beyond.
The falling wedge pattern is a bullish reversal chart formation characterized by two converging trend lines connecting lower highs and lower lows, indicating weakening downward momentum. Currently, XRP is retesting the resistance at the upper trendline of the wedge at $2.42. A breakout above this level could trigger a rapid price increase, with bulls aiming for the wedge's technical target of $3.40, representing a 48% rise from current prices. The relative strength index (RSI) has climbed to 47 from 31 since April 8, suggesting building bullish momentum. However, for the ongoing recovery to be sustained, XRP must first hold support at $2.20 and overcome resistance between $2.60 and $2.80. Analysts, including pseudonymous trader Cryptowzrd, express optimism about a rebound, noting that a validation of the falling wedge could propel XRP toward $2.90.
The SEC has officially begun reviewing the spot exchange-traded fund (ETF) application by the WisdomTree XRP Trust, which aims to provide investors with exposure to XRP. The SEC's notice, published on May 27, initiates a 21-day public comment period and a 240-day review timeline, focusing on investor protection and market manipulation risks. The proposed ETF would track XRP's price through the CME CF Ripple-Dollar Reference Rate, offering investors indirect exposure without holding the asset directly. Betting odds for XRP ETF approval by December 31 have risen to 84% on Polymarket, reflecting a 21% swing in favor of approval since April 22. Bloomberg senior ETF analysts predict an 85% chance of approval following changes in SEC leadership. Approval of these funds could unlock institutional capital, increasing demand for XRP and potentially driving prices toward $3-$8. Some analysts even foresee XRP reaching as high as $50 if major players like BlackRock enter the market. Readers are advised to conduct their own research before making investment decisions, as every trading move involves risk.
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