XRP Eyes 27% Rally as Grayscale’s ETF Filing Sparks Market Optimism

XRP is showing strong bullish momentum, with analysts predicting a 27% rally following a surge in ETF filing activities.

The token is consolidating within a bullish pennant pattern, signaling an imminent breakout. If XRP successfully breaches key resistance levels, it could climb toward $4.10, surpassing its previous all-time high of $3.55.

Technical indicators support the bullish outlook. The Relative Strength Index (RSI) remains above neutral, indicating growing buying pressure. However, the Stochastic Oscillator (Stoch) suggests the market is in overbought territory, meaning short-term corrections could occur before the next leg up. A daily close below $2.62 would invalidate the bullish thesis, making the next few trading sessions crucial for XRP’s trajectory.

Grayscale’s XRP ETF Filing Triggers Market Optimism

XRP is at the center of renewed investor interest following a 19b-4 filing by NYSE Arca to convert Grayscale’s XRP Trust into a spot exchange-traded fund (ETF). The filing, submitted to the U.S. Securities and Exchange Commission (SEC), has fueled speculation that other major financial institutions could soon follow suit.

Analysts foresee a 27% rally as ETF filings pick up pace and institutional interest rises. Source: MaximoMartinM via X

“The Sponsors […] believe that allowing Shares of the Trust to list and trade on the Exchange as an exchange-traded product (‘ETP’) would provide other investors with a way to invest in XRP on a regulated national securities exchange,” the filing states.

Following this development, FOX Business journalist Eleanor Terrett suggested that a wave of new XRP ETF filings could emerge next week. “Keep an eye out for possibly more filing activity by issuers with $XRP ETF applications next week,” she posted on X.

XRP ETF Race Gains Momentum

Grayscale’s move is part of a broader push for altcoin ETFs, with asset managers such as Bitwise, Canary Capital, 21Shares, WisdomTree, and CoinShares also eyeing XRP ETF products. Many of these firms had previously submitted applications, but under the old SEC administration, those filings were withdrawn due to a lack of acknowledgment. Now, with a potentially more receptive regulatory environment, fresh applications could soon flood the SEC.

Bitwise, Canary Capital, 21Shares, WisdomTree, and CoinShares also targeting XRP ETFs. Source: Amonyx via X

An approved XRP ETF by the SEC could be indicative not only of significant institutional support for the cryptocurrency but also of the possible closure of the four-year-long XRP case with the SEC. This clarity in regulation could give way to large-scale institutional investments, driving its price much higher.

XRP’s Bullish Technical Setup

Technically, XRP is charting a bullish pennant, which means it’s bound for a breakout, so to speak. If it does manage to break above this setup’s upper boundary and flips it into support, analysts expect the token to stage a 27% rally toward a fresh all-time high of $4.10 after clearing its previous high of $3.55.

Technical analysis suggests the XRP price is eyeing a bullish breakout above $4. Source: Apexfx_Alpha on TradingView

Data from Coinglass indicates that XRP saw $1.78 million in futures liquidations over the last 24 hours, with $842,000 coming from long positions and $941,000 from shorts. The RSI is still above neutral, supporting the uptrend, while the Stoch is in the overbought zone, which may suggest a short-term correction.

WATCH XRP PRICE ANALYSIS

BlackRock Speculation Adds to the Buzz

In the wake of Grayscale’s filing, speculation is mounting over whether BlackRock, the world’s largest asset manager, would enter the race for an XRP ETF. No filing has occurred to date, but comments from Terrett raised questions as to whether BlackRock is gearing up to do so.

BlackRock is eyeing an XRP ETF. Source: Amonyx via X

Per the experience of BlackRock, particularly in the successful launch of a spot Bitcoin ETF, many onlookers in the market believe this to be only a question of time as regards the firm turning its attention to XRP. A filing by BlackRock for an XRP ETF would add considerable credibility to the asset and could further drive institutional adoption.

What’s Next for XRP?

With multiple ETF filings expected in the coming days, XRP remains in a crucial price zone. If bullish momentum holds, the token could see a significant price increase, breaking out of its consolidation phase. However, a daily close below $2.62 could invalidate the bullish thesis and delay the anticipated rally.

Ripple (XRP) price chart. Source:XRP Liquid Index (XRPLX) via Brave New Coin

As regulatory clarity improves and institutional interest grows, XRP’s trajectory appears increasingly promising. Whether the anticipated ETF wave materializes or not, the next few weeks could be decisive for XRP’s long-term positioning in the cryptocurrency market.