XRP price continues to slowly form a bullish pennant chart pattern as expectations of the Securities and Exchange Commission approving a Ripple ETF rise.
Ripple (XRP) price was trading at $2.2 after falling 25% from its highest point this year, meaning it remains in a bear market.
One of the biggest XRP catalysts is the rising optimism that the SEC will approve a spot Ripple ETF in 2025. Companies like Bitwise, Canary Capital, 21Shares, and WisdomTree have already submitted their XRP ETF proposals.
There are rising odds that other companies like Fidelity, Blackrock, and Ark Invest will file their XRP ETFs because of its scale and their success in Bitcoin and Ether ETFs. Blackrock has accumulated over $52 billion in Bitcoin (BTC) and $3.54 billion in Ethereum (ETH) funds.
If this happens, the XRP price could surge, as we saw with Bitcoin and Ethereum ETFs earlier this year.
The hopes for a Ripple ETF rose after Donald Trump won the general election in November. He has already nominated Paul Atkins to be the next SEC chair, a move that will introduce major regulatory changes. Analysts expect a few major ETF approvals in 2024.
The XRP price will likely do well as the XRP Ledger and the RLUSD stablecoin continue to gain market share. According to CoinMarketCap, the RLUSD has gained over $53 million in market cap a few weeks after launch.
XRP price forecast
Ripple price peaked at $2.90 in December and has retreated by 25% from its highest point this year. It has remained above the 50-day and 100-day Exponential Moving Averages, a sign that the uptrend is continuing.
Most importantly, the XRP price is in a consolidation mode and is forming a bullish pennant pattern. This pattern, which can take a few days or weeks to form, comprises a vertical line, a flag pole, and a symmetrical triangle. It will be confirmed that the ripple’s pennant remains inside the two triangle sides.
Therefore, the XRP token will likely have a strong bullish breakout in the next few weeks as ETF odds rise. If this happens, the next key level to watch will be at $2.90, the highest point this year, which is about 35% above the current level. A surge above that price will push it to $3 and potentially to $5.
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