XRP Price Poised for Breakout: ETF Approval Could Ignite Rally

TLDR

• XRP price is forming a bullish pennant pattern, suggesting a potential breakout in the near future.
• A confirmed break above the $3.10 resistance level could push XRP price toward $3.37 and $3.60.
• The Directional Movement Index indicates growing positive strength, favoring upward momentum.
• EasyA co-founder Dom Kwok believes XRP’s potential ETF approval could bring significant capital inflows.
• The U.S. SEC has extended the review period for XRP ETF proposals, adding uncertainty to the market.

XRP price is showing signs of a potential breakout from a tightening pennant structure, suggesting a major price movement could be imminent. The price has been compressing within a narrow range as buyers and sellers continue to fight for control. With XRP hovering around $3.10 and holding support near $2.87, the market remains on edge, awaiting a possible breakout.

XRP Price Could Surge Past $4 Soon

XRP price is forming a bullish pennant pattern, often seen before a significant upward move. The coin has tested both upward and downward levels, leading to a narrower price range. A confirmed break above the $3.10 resistance level could push XRP price toward $3.37, with further upside potential reaching $3.60.

If XRP continues its upward momentum, there is a chance it could break through the $4 level. On the flip side, failure to maintain support at $2.87 could lead the price to retest the $2.70 level. Traders are closely monitoring these critical levels, as they could shape XRP’s longer-term price direction.

The Directional Movement Index (DMI) supports a bullish outlook, showing a steady rise in positive strength. The +DI is holding above the –DI, indicating an advantage for buyers. Additionally, the parabolic SAR dots are positioned below the price, signaling a shift toward upward momentum.

Dom Kwok’s Comments Highlight Potential ETF Inflows

EasyA co-founder Dom Kwok believes that XRP’s potential approval for an ETF could significantly boost market liquidity. In a recent statement, Kwok emphasized that such an approval could bring record inflows into the XRP market. He noted, “XRP has a strong liquidity and a wide holder base, making it a prime candidate for an ETF.”

Kwok also pointed out that XRP’s market size, second only to Bitcoin and Ethereum, makes it attractive for retail investors. Due to its lower price compared to Bitcoin and Ethereum, XRP is more accessible to a broader range of investors. “The ETF structure would allow millions of new investors to access XRP,” he added, underscoring the long-term potential of an ETF.

With the approval of an ETF, Kwok sees XRP attracting consistent capital flows over time, strengthening its market position. He stressed that the focus is not on short-term price movements, but on long-term capital influx. This would provide the market with the foundation to drive XRP price higher over time.

The U.S. SEC recently extended the filing deadlines for several firms, including 21Shares, Grayscale, and Bitwise, to October. The decision to review the ETF proposal by Cboe BZX, which includes the WisdomTree XRP ETF, has also been delayed. The new timeline, with a decision set for October 24, adds further uncertainty as the market awaits clarity on the approval.

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