XRP price has slumped hard after peaking at a record high in July. It has plummeted by ~20% from its highest point in July, coinciding with the ongoing crypto market sell-off. This article highlights why the Ripple price may surge in September.
XRP ETF Approval Deadline is Nearing
The past two years have demonstrated that there is strong demand for cryptocurrency exchange-traded funds, which investors see as good alternative assets.
Spot Bitcoin ETFs have brought in over $54 billion since their approval, while Ethereum funds have had $13 billion in inflows since July last year.
Similarly, the recently launched Teucrium Leveraged XRP ETF (XXRP) and ProShares XRP ETF (UXRP) have had substantial inflows this year.
XRP, as the third-biggest cryptocurrency, will likely benefit from the potential approval of spot ETFs. The Securities and Exchange Commission (SEC) will likely approve spot ETFs from companies such as Franklin Templeton, Bitwise, Canary, and Invesco.
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Analysts expect that these funds will have substantial inflows when they are approved. JPMorgan analysts believe that these funds will accumulate as much as $8 billion in their first year.
Therefore, the XRP price will likely continue doing well ahead of the ETF approval deadlines in October.
The approval will help to offset some of the other negative news from XRP. One of the negatives is that the XRP Ledger network is struggling, with its total value locked (TVL) being $96 million, much smaller than other chains like Cardano and Unichain.
The same is happening with its stablecoin valuation. While Ripple USD (RLUSD) has a market capitalization of over $710 million, with only $85 million in the native XRP Ledger.
XRP Price Technical Analysis
The daily timeframe shows that the Ripple price remains in a tight range this week. On the positive side, the coin has found support at the Strong, Pivot, and Reverse levels of the Murrey Math Lines.
The Relative Strength Index (RSI) has bottomed at 40.27 and is pointing upwards. It will likely cross the important neutral point at 50.
XRP price has formed the highly bullish falling wedge pattern whose two lines are about to cross each other. Therefore, the most likely outlook is for the coin to continue rising as bulls target the strong pivot point at $3.5, which is 23% above the current level.
On the flip side, a drop below this month’s low of $2.69 will invalidate the bullish forecast.
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