Ripple's (XRP) Price Sees Notable Uptick of 2% during the Asian session on Friday

Ripple’s XRP saw a notable uptick of 2% during the Asian session on Friday, following Grayscale’s filing with the US Securities and Exchange Commission

World’s second largest cryptocurrency by market capitalization, Ripple’s XRP, saw a notable uptick of 2% during the Asian session on Friday. The positive movement comes as asset manager Grayscale filed an application with the US Securities and Exchange Commission (SEC) to convert its Grayscale XRP Trust into a spot XRP exchange-traded fund (ETF). This move has spurred excitement among investors and analysts, who predict a potential 27% rally for XRP in the coming days, especially as other issuers are expected to follow suit with XRP ETF filings next week.

As the dust settles following the launch of ProShares Bitcoin Strategy ETF (NYSE Arca: BITO) on the New York Stock Exchange, the growing momentum for new altcoin ETFs in the United States is capturing significant attention. As ProShares filed for a Bitcoin (BTC) ETF in March 2021, asset managers are now able to submit filings to the SEC for a variety of crypto-related products, including altcoin ETFs.

Grayscale, known for its cryptocurrency trusts and digital asset management services, has filed an application with NYSE Arca to convert its XRP Trust into a spot XRP ETP, a critical step in the push to allow XRP to be traded on a regulated national securities exchange. The filing states that the conversion to an ETP would give investors an alternative, regulated way to gain exposure to XRP. This shift to a spot ETF would allow broader market access and may have significant effects on XRP’s future price performance.

According to FOX Business’ Eleanor Terrett, Grayscale's XRP ETF filing is kicking off a new wave of interest in the asset class. More asset managers could soon submit XRP ETF applications to the SEC, and it's expected that Bitwise, Canary Capital, 21Shares, WisdomTree and CoinShares will be among those joining the filing wave.

Previously, several XRP ETF applications were filed under the prior SEC administration, but due to a lack of acknowledgment from the Commission, those filings were withdrawn. Now, with a potential new approach under the current SEC leadership, these firms are expected to resubmit their filings in the coming days.

Should the SEC approve these XRP ETF applications, it could mark the end of Ripple’s four-year legal battle with the SEC and fuel a massive rally for XRP, which is already showing signs of bullish recovery following the recent court filings that could potentially lead to a settlement between the two parties and the end of the XRP lawsuit.

As XRP prices continue to show bullish potential, the coin remains in a consolidation phase within a bullish pennant pattern on the four-hour chart. This pattern suggests that the price is likely to break upward, and if it does, a 27% price surge could push XRP to a new all-time high of $2.62. Currently, XRP is testing the upper boundary resistance of the pennant, and breaking this resistance level and holding it as support could trigger the anticipated rally.

However, for this bullish scenario to unfold, XRP will also need to overcome its existing all-time high resistance at $3.55, which could pose a challenge as the token attempts to reach new heights.

A bullish outlook is further supported by the Relative Strength Index (RSI), which indicates that bullish momentum is prevailing, as it is positioned above its neutral level. Despite this, the Stochastic Oscillator is showing signs of being in the overbought region, hinting that a potential reversal might be on the horizon.

For the bullish outlook to remain intact, XRP must continue to hold the $2.62 support level. A daily candlestick close below this level would invalidate the bullish thesis and signal a potential shift in trend.

With growing optimism about the XRP ETF filings and the ongoing consolidation within a bullish pennant pattern, XRP is positioned for potential gains in the near future. If the SEC approves these filings and XRP ETFs become a reality, it could trigger a significant rally, taking the token closer to new all-time highs and further solidifying its position in the market.

Investors and analysts will closely monitor developments next week as XRP ETF applications flood the SEC and the legal landscape for Ripple continues to evolve. All signs currently point to heightened bullish activity for Ripple’s XRP in the coming days.