XRP Surges Over 17% Amid ETF Hopes and Market Turmoil

XRP, the third-largest cryptocurrency by market capitalization, has experienced a significant boost, rising over 17% in the past week. The primary driver behind this surge is the renewed optimism surrounding the potential launch of a cryptocurrency exchange-traded fund (ETF).

SEC’s Recognition of Grayscale’s ETF Application

In a recent filing on February 13, the U.S. Securities and Exchange Commission (SEC) acknowledged Grayscale’s application (Form 19b-4) to list XRP ETFs. This acknowledgment has led to a marked increase in the probability of ETF approval in 2025. Bet odds on this approval have climbed to an impressive 81% on the betting platform Polymarket.

Price Action and Technical Indicators

After a period of consolidation between $2.26 and $2.54, XRP began to ascend from its lows of $2.33 on February 12. Currently, the trading of XRP is centered around the daily Simple Moving Average (SMA) of 50, which stands at $2.668. Success in maintaining prices above this SMA could pave the way for XRP to break through the $2.91 resistance level and even reach the psychological $3 mark.

Can XRP Reach $3?

If XRP manages to reclaim and hold above the $2.668 level, the bulls could push the price higher and test the $2.91 barrier. Successfully breaching this level could clear the path for XRP to challenge the $3 mark, though reaching this level would likely prompt a retest of the previous high of $3.4.

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As of the latest update, XRP has climbed 1.99% in the past 24 hours to $2.8 and soared 17% over the past week.

Bullish and Bearish Scenarios

In the event of a downturn, bulls may attempt to convert the daily SMA 50 into a support level. Should they fail to do so, XRP could revert to its prior trading range, potentially consolidating between $2.26 and $2.54 for some time.

XRP Ledger Upgrades and Market Reactions

On a more positive front, the XLS-56 amendment has recently been implemented on the XRP Ledger (XRPL). This enhancement allows for bundled transactions of up to eight in a single operation. This upgrade improves transaction synchronization, efficiency, and user experience. Notably, this development comes as Automated Market Maker (AMM) swap volumes and new wallet registrations are on the rise.

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Conclusion

XRP’s recent surge is a testament to the ongoing developments in the cryptocurrency market, particularly the prospect of ETF listings. With market sentiment and technical indicators showing signs of progress, XRP could continue its upward movement. However, investors should remain cautious, as a dip in prices could lead to further consolidation.

The implementation of the XLS-56 amendment on the XRPL is a significant step forward, offering enhanced functionalities that could benefit both current and new users. The combination of this upgrade with the growing interest in XRP ETFs suggests a positive trajectory for the cryptocurrency.

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