XRP price has risen over the last four consecutive days, moving from a low of $2.7050 to its current level of $2.90. The Ripple token has formed a triple-bottom pattern and is poised to enter the third phase of the Elliot Wave pattern, as traders await the upcoming XRP ETF approval.
XRP Price Technical Analysis
The daily timeframe chart shows that the XRP price has formed a triple bottom pattern at $2.70, where it has failed to move below since August this year.
Most importantly, the coin has moved into the second phase of the Elliot Wave chart pattern. The first part of this wave began when the coin bottomed at $1.9100 on June 22 and ended when it reached a record high of $3.60.
Wave 1, 3, and five normally move in the direction of the trend, while wave 2 and 4 are corrective in nature. The second wave, where the coin is currently located, is typically a pullback that reaches between the 50% and 61.8% retracement level.
Therefore, there are signs that the XRP price is about to enter the third phase, which is usually the strongest and the longest in a chart analysis.
At the same time, the recent pullback is the handle section of the cup-and-handle pattern, which has been forming since earlier this year. It is also part of the formation of the bullish pennant pattern, which consists of a vertical line resembling a flagpole and a triangle.
XRP price has been supported by the 200-day Exponential Moving Average (EMA).
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Therefore, the most likely scenario for the XRP price is highly bullish, with the immediate target level being at $3.6597, the highest point on June 17.
XRP ETF Approval is the Main Catalyst
The primary catalyst for the XRP price is the anticipated approval of several spot XRP ETFs by the Securities and Exchange Commission, which is expected to lead to substantial demand over time.
Rex-Osprey recently launched a spot XRP ETF that uses the investment company approach, which is not popular among investors. Still, this fund has now accumulated over $80 million in assets, which is a strong number.
Other XRP-related assets are doing well, with the CME futures nearing the $1 billion open interest within a short period. Additionally, leveraged XRP ETFs, such as UXRP and XXRP, are all thriving after reaching millions of dollars in assets.
Therefore, ETFs offered by companies like Franklin Templeton and Invesco are likely to have more demand from investors. Also, there is a likelihood that these funds will cross the $8 billion mark in terms of assets within the first year.
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