SEC Confirms Three Spot XRP ETF Files, What Will Be the Future Trend of XRP?

Following the cryptocurrency market’s decline, XRP price has risen by more than 15% since closing at $2.32 on Feb. 6. While most altcoins have struggled to stage a recovery, XRP’s weekly chart has been praised for its bullish outlook.

SEC begins to approve XRP ETF

XRP’s recent bullish activity may be related to its ETF news, as the SEC has confirmed that CoinShares has filed another spot ETF filing through Nasdaq. This is the fourth spot XRP ETF filing that the SEC has preliminarily approved, following Grayscale, 21Shares, and Bitwise. As Cointelegraph reported, the commission also confirmed ETF filings on behalf of WisdomTree and Canary Capital.

Brazil’s securities commission, Comissão de Valores Mobiliários, has also approved the country’s first spot XRP ETF, launched by the Hashdex Nasdaq XRP Index Fund. However, the spot ETF has not yet started trading, and Hashdex announced that it will release more details soon.

Despite the positive catalysts, XRP futures traders have yet to return. Earlier this month, it was reported that XRP open interest (OI) fell by more than 78% last week, following a 26% drop in XRP prices in the first week of February.

XRP futures open interest chart. Source: CoinGlass

While prices have risen nearly 20% since the crash, XRP futures OI has only risen by $600 million after losing nearly $4 billion in notional value. This means that relatively low volumes or trading activity are controlling the current price action, which could be susceptible to manipulation and volatility.

Analyst predicts XRP will hit $6 ‘god candle’

As XRP’s recovery has outperformed other major altcoins, anonymous cryptocurrency commentator Polly believes that market makers are preparing for the crypto asset to hit new all-time highs.

The cryptocurrency trader notes that the SEC-Ripple lawsuit will be concluded by the end of February. This would trigger a “magic candle” for the asset, allowing XRP to reach a high of $6 within the next 10 days. However, this prediction is based on a significant assumption, as neither the SEC nor Ripple has officially confirmed any case resolution.

While Polly’s prediction is somewhat off the mark, XRP market analyst Dom stressed that XRP’s current resistance range between $2.50 and $2.80 remains a critical node. The analyst explained that XRP’s all-time high volume-weighted average price (VWAP) continues to act as overhead resistance for the token, currently sitting just above $2.80.

Dom's 6-hour analysis of XRP. Source: X.com

Therefore, breaking through $2.80 and closing out the position is the first hurdle that XRP is currently facing, after which XRP aims to either set a new all-time high or retest its current high of $3.40.