The XRP price had another uneventful performance in May, as it remained within a tight range. Ripple was trading at $2.25 on Thursday, May 29, a few points below this month’s high of $2.6368, and where it started the year. This article provides a forecast if the SEC approves an XRP ETF in June.
Will the SEC Approve an XRP ETF in June?
XRP has become the most popular cryptocurrency among exchange-traded funds (ETF) issuers in the United States. 9 companies like Franklin Templeton, Bitwise, WisdomTree, and VanEck have all applied for a spot XRP ETF.
The SEC has delayed the approval of Ripple and other altcoins this year as it consults and assesses the pros and cons of listing them. XRP will be watched closely in June for two main reasons.
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First, there are rumors that BlackRock, the largest asset manager globally, will apply for a spot XRP ETF. The company has not commented on this yet, but it is possible, given that its BTC and ETH ETFs have become highly successful.
Second, the SEC set July 17th as the deadline for the approval or delay of Franklin Templeton’s XRP ETF. The most likely scenario here is where the agency delays it again until October, which is the deadline for other ETFs by Grayscale, Bitwise, and 21Shares.
The SEC will likely wait to complete the review of all applied ETFs before approving them. That’s because approving one ahead of the rest would give it a first mover advantage.
An ETF approval would be bullish for XRP, as it would likely lead to increased inflows from institutions. JPMorgan estimates that it would have at least $8 billion in the first year, making it potentially more successful than Ethereum.
XRP Price Prediction June
The three-day chart shows that the XRP coin continues to move lower than the year-to-date high of $3.38. It is slowly forming a symmetrical triangle pattern, with its two lines about to converge.
This triangle is forming after the coin staged a strong bullish breakout in November last year. As such, it is slowly forming a bullish pennant pattern, a highly popular bullish continuation sign in technical analysis
Therefore, the most likely scenario is where the Ripple price drops to the lower side of the triangle at $1.94. This is possible since June is usually the worst month for cryptocurrencies as traders take their summer holiday.
It will then explode higher after hitting the lower side of the triangle. If this happens, it will first retest the YTD high of $3.4, followed by $5. An ETF approval will supercharge this growth.
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