The Optimistic Revival of XRP ETF Talks by Canary Capital
Market analysts and enthusiasts have been closely watching the developments surrounding the possible introduction of an XRP Exchange-Traded Fund (ETF) in the United States. The recent filing by Canary Capital, a new player in the Crypto Investment space, has sparked fresh optimism and discussions regarding the fate of an XRP ETF.
Canary Capital's Initiative for XRP ETF
Canary Capital's move to file for an XRP ETF with the US Securities and Exchange Commission (SEC) comes hot on the heels of a similar action taken by asset manager Bitwise. This bold step has rekindled hopes that the US market may soon witness an XRP ETF being approved and launched.
ETF Store President Nate Geraci has joined the conversation, expressing confidence in the likelihood of an XRP ETF approval. Geraci believes that it's not a matter of 'if' but rather 'when' the approval will be granted.
Geraci also highlighted the importance of the US political environment in shaping the fate of XRP ETF approval. A possible change in the US President or SEC administration could Play a crucial role in paving the way for progress in the ETF arena.
The Crypto community's sentiments towards SEC Chair Gary Gensler and the regulatory landscape have been mixed, with some perceiving the regulatory efforts as overly stringent. Conversely, the potential return of former US President Donald Trump has caught the attention of investors who hope for a boost in Innovation within the Digital asset space.
However, concerns linger around the SEC's ongoing Legal battle with Ripple and the implications it may have on the approval process for XRP ETFs. Ripple's CLO Stuart Alderoty hinted at a potential cross-appeal, adding a layer of uncertainty to the market dynamics.
Despite the uncertainties, Ripple CEO Brad Garlinghouse and pro-XRP lawyer Bill Morgan remain bullish on the prospects of an XRP ETF. Garlinghouse's statement, "It's happening again," reflects the optimism that has been reignited by Canary Capital's recent move.
XRP's Price Outlook and Market Analysis
At present, XRP has witnessed a 1.02% increase in value over the past 24 hours, trading at $0.5309. However, the trading volume has seen a 15% decrease, standing at $845 million. The overall sentiment among investors remains cautious due to the prevailing legal uncertainties, despite occasional price fluctuations.
According to Coinglass's on-Chain metrics, XRP might Experience a temporary correction, indicated by a long-to-short ratio of 0.9 – the lowest level in a month. This ratio suggests a prevailing pessimistic sentiment among traders who anticipate a price decline.
The Relative Strength Index (RSI) indicator on the daily chart indicates bearish momentum as it trades below the neutral level of 50. This suggests a continuing downward trend in XRP's value. However, despite these bearish signals and regulatory actions, market analysts foresee a potential price rally for XRP, projecting a target of $3 by Christmas.
