Ripple (XRP) is witnessing a wave of positive sentiment as anticipation builds for the imminent launch of the Grayscale Trust for the cryptocurrency. As enthusiasm mounts, traders are gearing up for potential opportunities.
This recent development has ignited speculation surrounding the possibility of an XRP Exchange Traded Fund (ETF) in the United States. Below is an analysis of how the price of the altcoin might respond as this sentiment evolves.
Ripple ETF Rumors Circulate
On September 12, Grayscale, a leading global digital asset investment firm, declared the launch of its XRP Trust in the US. Following this announcement, XRP’s price rapidly increased from $0.53 to $0.58.
Though the price has since stabilized at $0.56, on-chain metrics from Santiment indicate a notable surge in Weighted Sentiment, reaching a peak not seen in over a month. Weighted Sentiment measures social activity to determine market sentiment toward a project, whether bullish or bearish.
An increase in this metric signifies a higher volume of positive remarks, posts, or discussions, whereas a drop would suggest rising pessimism. The recent uptick indicates that previously hesitant investors are becoming more bullish about XRP’s outlook.
Read more: XRP ETF Explained: What It Is and How It Works
In cryptocurrency vernacular, this phenomenon is referred to as the Fear of Missing Out (FOMO)—potentially regarding the upcoming crypto ETF. Analyst Doctor Crypto expressed thoughts on this topic, suggesting that the XRP ETF could materialize sooner than anticipated.
“Today Grayscale announced the first XRP trust. Most likely, in 4-8 months, you will see the first XRP ETF,” stated Doctor Profit .
Historically, peaks in positive sentiment can lead to short-term price corrections. If this pattern persists, XRP may encounter a potential price decline shortly.
Supporting this perspective, the Network Growth metric mirrors this bearish sentiment. After Grayscale’s announcement, the influx of new addresses to the XRP Ledger (XRPL) surged, signaling increasing interest in XRP.
However, the count of new addresses engaging in successful transactions has since waned, implying that XRP’s price might recede from its recent highs.
XRP Price Forecast: Bearish Reversal Approaching
The rise in XRP’s price over the last 24 hours has allowed it to outperform several of the other top 10 cryptocurrencies. Nevertheless, the Chaikin Money Flow (CMF) on the daily chart remains negative.
This negative CMF indicates that distribution is still outpacing accumulation, suggesting an upcoming potential price drop. Similarly, the Awesome Oscillator (AO) is also exhibiting a negative reading, despite displaying green histogram bars.
The AO indicates momentum, and although a positive reading signals bullish momentum, the current negative indication implies that the bulls lack the power to sustain or amplify the price hike. Considering these factors, XRP’s price could decline to $0.52 in the days ahead.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
Conversely, XRP could counter the bearish trend. If so, the upward momentum might resume, potentially driving the cryptocurrency’s value to $0.60.
Disclaimer
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