The XRP price has remained relatively stagnant since the beginning of the year, trading within a narrow range due to a lack of strong bullish catalysts. However, recent developments suggest a potential shift in momentum. With Grayscale receiving regulatory approval to convert its Digital Large Cap Fund—containing XRP—into a spot ETF, market participants are growing increasingly optimistic about a potential price rally. As of early July, XRP was trading at $2.17, showing only a minor 0.7% decline over the past 24 hours, indicating consolidation ahead of possible breakout conditions.
Grayscale Secures SEC Approval for Multi-Asset ETF Including XRP
In a significant development for the crypto industry, Grayscale has officially received approval from the U.S. Securities and Exchange Commission (SEC) to offer institutional investors access to a diversified basket of digital assets through its GDLC Fund. This includes major cryptocurrencies such as Bitcoin, Ethereum, Solana, Cardano, and notably, XRP.
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Although XRP makes up only 4.8% of the fund’s allocation, the mere inclusion carries substantial symbolic and regulatory weight. The SEC’s greenlight implies a softening stance on XRP’s classification, suggesting it may no longer be viewed strictly as a security—an issue that has plagued Ripple and its native token since the 2020 lawsuit.
This marks a pivotal turning point. For years, uncertainty surrounding the Ripple vs. SEC case limited mainstream investment in XRP. Now, with clearer regulatory signals and institutional-grade investment vehicles entering the market, investor confidence is being restored.
Nate Geraci, a prominent figure in digital asset finance, described the approval as a “full circle moment” for the XRP community. The sentiment echoes across forums and trading desks: this could be the beginning of renewed institutional demand.
Moreover, Bloomberg analyst James Seyffart highlighted that another decision looms on July 31—this time concerning Bitwise’s similar ETF application. That fund also allocates 4.8% to XRP. If approved, it could amplify buying pressure and further fuel speculation around a broader market rally.
Technical Indicators Suggest Bullish Reversal Potential
From a technical perspective, XRP appears to be setting up for a potential breakout. A clear inverse head and shoulders pattern has formed on the daily chart, typically regarded as a strong bullish reversal signal. This pattern suggests that selling pressure is waning and buyers may soon regain control.
The measured move from this formation—calculated from the depth of the "head" to the neckline resistance at $2.17—points to a potential upside target of **$2.48, representing approximately a 14% increase. Reaching this level could act as a springboard toward more ambitious targets, including the psychologically significant $3 mark**.
However, several key resistance levels must first be overcome:
- The 50-day Simple Moving Average (SMA) at $2.23 has proven difficult to breach over the past two weeks.
- The 200-day SMA at $2.36 remains a formidable barrier, historically acting as strong resistance during previous rallies.
Sustained trading above these levels would confirm bullish momentum and increase the likelihood of reaching $3. Conversely, failure to break through could result in continued consolidation or even a pullback.
Whale Activity: A Double-Edged Sword
Recent on-chain data adds another layer of complexity. A CoinGape analysis revealed that XRP whales sold off approximately 560 million tokens over a two-week period, contributing to short-term downward pressure. Such large-scale selling often signals profit-taking or reduced confidence among major holders.
Yet, the narrative may be shifting. With favorable regulatory news and improving technical structure, there are signs that whale interest could return. Institutional access via ETFs lowers entry barriers and enhances liquidity—factors that historically attract large investors back into the market.
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If whales begin accumulating again, their buying power could accelerate price appreciation and validate the bullish thesis.
Frequently Asked Questions (FAQs)
Q: Could the Grayscale ETF approval drive XRP’s price higher?
A: Yes. While the ETF does not focus solely on XRP, its inclusion signals regulatory acceptance and opens doors for institutional investment, which can boost demand and market sentiment.
Q: What technical pattern is forming in XRP’s price chart?
A: An inverse head and shoulders pattern has emerged on the daily timeframe, indicating a potential trend reversal and targeting a 14% rise toward $2.48.
Q: Why hasn’t XRP rallied yet despite positive news?
A: Market inertia, lingering whale selling, and resistance at key moving averages ($2.23 and $2.36) have delayed the rally. Broader crypto market trends also play a role.
Q: Is $3 a realistic target for XRP in the near term?
A: It’s possible if momentum builds post-ETF launch and price sustains above $2.36. However, macro conditions and BTC performance will influence this outcome.
Q: How does the Bitwise ETF deadline affect XRP?
A: With a decision expected by July 31 and a similar 4.8% XRP allocation, approval could compound positive sentiment and trigger additional buying interest.
Q: Does the ETF mean XRP is officially not a security?
A: Not explicitly—but the SEC’s approval strongly suggests a de facto shift in regulatory posture, reducing legal overhang and boosting investor confidence.
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Final Outlook
XRP stands at a critical juncture. After years of legal uncertainty and sideways price action, multiple catalysts are converging: regulatory progress via Grayscale’s ETF approval, favorable technical formations, and renewed institutional interest.
While challenges remain—including resistance levels and past whale outflows—the overall sentiment is shifting bullish. Should Bitwise receive similar approval by July 31 and institutional inflows pick up pace, XRP could see meaningful momentum toward $2.50 and beyond.
For traders and investors alike, monitoring volume patterns, on-chain flows, and broader market trends will be essential in navigating the next phase of XRP’s journey—one that may finally lead toward the elusive $3 milestone.