XRP Price Analysis
XRP price remains in a bear market after plummeting by 22% from its highest point this year. Still, its strong technicals and the upcoming ETF deadlines signal a potential rebound.
Technical Indicators
The daily timeframe chart suggests that the Ripple (XRP) price may be poised for a strong rebound this month. It has formed a falling wedge pattern whose two falling trendlines are nearing their convergence.
The coin has also settled at the strong pivot reverse level of the Murrey Math Lines (MML).
Murrey Math Lines
MML is a tool used to identify potential support and resistance levels. It was created by dividing the price movement into an eight-part grid or octave. The strong, pivot, and reverse, where it settled at is known for rebounds. Most importantly, it coincided with the double-bottom pattern at $2.7167 and the confluence of the falling wedge pattern.
Rebound Expectations
Therefore, the double-bottom, falling wedge, and the MML position point to a strong rebound. The initial target level in case of a breakout is the year-to-date high of $3.6512, up by 30% above the current level.
Price Projections
The Murrey Math Lines points to an eventual rebound to $4.29, the extreme overshoot, which is about 55% above the current level. However, a drop below the ultimate support at $2.34 will invalidate the bullish XRP price forecast.
XRP ETF Approvals
The main catalyst for the XRP price will be the upcoming deadlines for the XRP ETFs. Most of these deadlines will be in October, and Polymarket data shows that the odds of an approval are over 88%.
Investor Expectations
Therefore, investors will likely buy the coin ahead of the approvals as they expect strong inflows. Besides, recent data shows that the existing futures-based XRP ETFs are having strong demand from investors. The same is happening in the futures market, where the open interest for CME contracts has jumped in the past few weeks.
Market Demand
Most importantly, existing Bitcoin and Ethereum ETFs have had robust inflows since last year, meaning that there is strong demand for these assets. This trend is likely to continue with the approval of XRP ETFs, driving the price of the coin higher.