Ripple (XRP) Spikes 14% On SEC Accepting ETF Filing — More Upside Potential Ahead

Ripple (XRP) has witnessed renewed bullish momentum following the SEC’s acceptance of Grayscale’s application for an XRP ETF. This news has fueled investor sentiment, propelling the price beyond key technical resistance levels.

The recent breakout from a corrective structure signals the potential start of a new impulsive wave. However, with XRP nearing overbought conditions which is a sign of caution. 

SEC Accepts Grayscale’s EFT Applications 

The U.S. Securities and Exchange Commission (SEC) has officially accepted Grayscale’s applications to launch exchange-traded funds (ETFs) for XRP and Dogecoin (DOGE). This development marks a significant step in expanding institutional access to cryptocurrencies beyond Bitcoin and Ethereum. 

While acceptance does not imply immediate approval, it signals a willingness from regulators to consider a broader range of crypto assets for financial products. Grayscale’s move follows its success in converting its Bitcoin Trust into a spot ETF, reinforcing its position as a key player in the industry. 

The approval process will likely undergo thorough scrutiny, especially given past regulatory concerns surrounding XRP and DOGE. If approved, these ETFs could introduce fresh liquidity and mainstream adoption for the two altcoins, potentially driving further market interest. Investors are now closely watching the SEC’s next steps, as the decision could set a precedent for additional altcoin ETFs in the future.

XRP Price Analysis

The 4-hour chart highlights XRP’s recovery from a corrective phase, forming a WXY correction structure. Following the completion of wave (C) on Feb 3, within a larger corrective sequence, price action rebounded from key support around $2.00, indicating bullish accumulation.

A notable breakout occurred as XRP surpassed horizontal resistance at $2.53, confirming buyers’ strength. This aligns with the completion of a descending channel, which had previously suppressed price action. The breakout has now positioned XRP towards its next resistance, located near $2.77 at the 0.618 Fibonacci retracement level. A decisive close above this level could confirm a broader reversal towards $3.08 (1.0 Fib extension) and beyond.

Momentum indicators further reinforce this bullish outlook. The 4-hour Relative Strength Index (RSI) has surged towards overbought conditions, reflecting strong buying pressure. However, a potential bearish divergence could emerge if the price fails to establish higher highs while the RSI declines. This makes the $2.53 zone a critical retest region. Sustaining above this area would validate continued upside, whereas failure may trigger a correction towards $2.26.

The Elliott Wave count suggests that XRP may have begun a new impulsive structure. If this holds, the next phase of expansion could push the price towards the $3.31-$3.59 region (1.272 and 1.618 Fibonacci extensions). Traders should monitor volume inflows for confirmation, as declining momentum could indicate a corrective wave before further gains.

XRP Price Prediction 

The 1-hour chart provides a more granular view of XRP’s current trajectory. Wave (ii) of the developing five-wave impulsive structure appears to have found support near $2.26. This suggests that the current rally is unfolding as wave (iii), which could extend significantly if momentum sustains.

Initial targets for wave (iii) lie at $3.08 (1.0 Fib extension) and $3.31 (1.272 Fib), with a potential extension towards $3.59 at the 1.618 Fibonacci level. These levels align with prior resistance zones, making them key areas where profit-taking might occur.

However, caution is warranted as the RSI on the 1-hour chart is entering overbought territory. A short-term retracement towards $2.67 or $2.53 could occur before XRP resumes its bullish trajectory. If wave (iv) develops, it may find support near these Fibonacci levels before wave (v) extends the move higher.

Given the ETF-related bullish catalyst, XRP has the potential to reach $3.90 (2.0 Fib extension) in the coming sessions. However, any break below $2.53 would invalidate the immediate bullish scenario, exposing XRP to a retest of lower support at $2.26.

Key Levels to Watch

• Immediate Resistance: $2.77 (0.618 Fibonacci retracement)
• Key Resistance: $3.09 (1.0 Fibonacci extension), $3.31 (1.272 Fib)
• Major Resistance: $3.59 (1.618 Fibonacci extension), $3.90 (2.0 Fib)
• Immediate Support: $2.67 (0.5 Fibonacci retracement)
• Key Support: $2.54 (0.382 Fib retracement, breakout retest zone)
• Critical Support: $2.26 (Wave (ii) low), $2.26 (structural support)