Can XRP Price Hit $5 As US SEC Evaluates WisdomTree XRP ETF Application

XRP price has recorded a slight pullback today as the broader crypto market stayed in the red. However, recent developments hint at a major rally ahead for Ripple’s native crypto.

For context, the US SEC has officially initiated its review process of WisdomTree’s XRP ETF application, bolstering market confidence.

XRP Price Eyes Rally As US SEC Begins Review of WisdomTree’s XRP ETF

XRP price is showing signs of revival amid a pro-crypto regulatory shift in the US. Notably, the US SEC has formally launched its review process for WisdomTree’s application to launch a Spot XRP ETF.

The ETF, awaiting approval, will start trading on the CBOE BZX Exchange and track XRP’s spot price using the CME CF Ripple-Dollar Reference Rate.

Meanwhile, the development follows the US SEC’s latest release, a formal notice that puts the application under evaluation according to Section 19(b)(2)(B) of the Securities Exchange Act of 1934. The Commission now needs to assess whether the application meets the necessary investor protection standards and anti-manipulation safeguards.

This development marks a key milestone for the Ripple community, as the US SEC seeks public input on the matter. Notably, this advancement in the process has further fueled hopes, especially as optimism soars toward a potential resolution of the long-running Ripple Vs. SEC lawsuit.

Besides, pro-XRP lawyer Bill Morgan also lauded the development, calling it “excellent news.”

Why Does This ETF Review Matter?

XRP has faced legal challenges lately, particularly with the US SEC’s ongoing case against Ripple. Having said that, this ETF, if approved, will mark a significant step forward for the blockchain firm.

Besides, looking at the success of the Bitcoin ETF launch in the US, the market participants anticipate the Ripple ETF approval to boost the XRP price.

Simultaneously, it also comes after the recent launch of the VolatilityShares’ XRP ETF, which has already fueled market optimism. Meanwhile, according to Polymarket data, the XRP ETF approval chance by the US SEC now stands at 83%.

Can XRP Price Hit $5?

XRP price was marginally down today and traded at $2.3, while its one-day volume fell 8% to $2 billion. The crypto has lost more than 2% in the weekly chart while losing about 1% monthly. Besides, the XRP Futures Open Interest also fell around 1%, indicating the cautious sentiment of the traders.

However, despite the gloomy performance, the market pundits remain optimistic about the future trajectory of the coin. For context, analyst EGRAG CRYPTO said that the XRP price is likely to hit $5.5, citing the bull flag formation. However, he noted that the crypto must break through resistance at around $2.3 by June 30.

Simultaneously, another expert, Rose Premium Signals sets the XRP price target at $3.87. However, she also noted that XRP must breach through the $2.95 and $3.39 levels to achieve that.

Meanwhile, the analyst said that the “ideal buy zone” sits at $1.85 for Ripple’s asset, hinting towards a likely pullback ahead before a breakout.