XRP price has moved sideways this month as investors wait for the upcoming Franklin Templeton ETF decision by the Securities and Exchange Commission. Ripple was trading at $2.22 today, June 17, up by about 14% from its lowest point during the weekend. This article explores the top three reasons why it may surge soon.
XRP Price Technical Analysis Points to More Gains
The daily chart indicates that the XRP price has been in a downtrend over the past few months, declining from the year-to-date high of $3.3942 in January to $2.22 as of today.
XRP has formed a descending trendline that connects the highest swings since January this year. It has also formed an inverse head and shoulders pattern, a popular bullish reversal pattern.
Ripple has also jumped above the 100-day Exponential Moving Average (EMA), a sign that bulls are regaining momentum. The Relative Strength Index (RSI) and the Klinger oscillator have pointed upward.
XRP price is also along the 38.2% Fibonacci Retracement level. Therefore, the token only needs to move above the descending trendline to exit a six-month consolidation and invalidate the descending triangle pattern.
Therefore, the token is likely to experience a strong bullish breakout as bulls target the year-to-date high of $3.40, which is approximately 46% above the current level. A drop below the lower side of the triangle pattern will invalidate the bullish XRP price forecast.
Bitcoin Price to Flip 8-Year Trendline
The other main reason why the XRP price is expected to surge is that Bitcoin is poised to break an eight-year trendline. This chart shows that the BTC is slightly below the ascending trendline that connects the highest swings in December 2017, April 2021, November 2021, and January this year.
Bitcoin has also formed two rounded bottoms in this period. Therefore, a move above that level will confirm the bullish breakout and indicate further gains, potentially reaching $150,000 or $200,000.
Most altcoins will likely surge if this happens since Bitcoin is usually the main driver of the altcoin market.
XRP ETF Approval
Further, the next key catalyst for the XRP price is that the Securities and Exchange Commission (SEC) will approve a spot XRP ETF later this year.
The agency is expected to postpone its decision on the Franklin Templeton XRP ETF today. This delay will give it more time to review other ETF proposals by companies like Grayscale and Bitwise.
The SEC will likely approve the spot XRP ETF in the long run, which explains why Polymarket traders have assigned odds of over 90%. An ETF approval will be bullish for XRP and other tokens.
