- Ripple price has refused to gain momentum despite broader market optimism instigated by possible spot BTC ETF approvals.
- XRP could extend the fall by 2% to find support at $0.5442 before a possible correction.
- The bearish thesis will be invalidated once XRP price breaks and closes above the descending trendline around $0.6500 level.
After the July victory in the Ripple versus SEC case, sentiment has shifted for XRP. This can be seen not only in the chatter on crypto-related social media but also moves by institutions like Grayscale, among others, showing confidence in the regulatory clarity surrounding the payments token.
Also Read: XRP price hit a three-year low against Bitcoin as fears of Spot BTC ETF rejection span the market
XRP accounts for nearly $10 million of Grayscale’s GDLC fund
Ripple (XRP) price continues to falter, losing strength despite broader market cheer ahead of possible spot BTC ETF approvals. The gloom comes despite XRP accounting for nearly $10 million (2.39%) of the Grayscale Digital Large Cap (GDLC) index fund of $400 million.
GDLC index fund
It comes after Grayscale re-added XRP to its index fund following a two-year pause. Notably, the asset management firm had plucked out XRP from its fund in 2020 when the SEC filed a lawsuit against Ripple. With the re-addition, the asset manager effectively acknowledges regulatory clarity surrounding XRP, coming on the back of US District Judge Analisa Torres declaring XRP “only a security when sold to institutional customers” in July 2023.
Ripple price outlook amid heated spot BTC ETF narrative
Ripple (XRP) price continues to consolidate below the critical level of $0.5784, formerly an important support. With this level acting as a resistance, the payment token is sitting on robust support due to the lower band of the Bollinger indicator at $0.5512 and the horizontal line at $0.5442.
The trajectory of the Relative Strength Index (RSI) moving south points to a falling momentum, which coupled with the red histogram bars of the Awesome Oscillator (AO) in negative territory accentuates the bearish thesis.
Increased selling pressure could see XRP price descend further to test the $0.5442 support before a potential bounce in favor of the north. A break and close below this level could see Ripple price retest the Fair Value Gap (FVG) extending between $0.4927 and $0.5111.
XRP/USDT 1-day chart
On the other hand, if investors seize the opportunity to buy XRP on the dip, Ripple price could push north, flipping the $0.5784 blockade into a support floor. Further north, the remittance token’s market value could confront the centerline of the Bollinger indicator at $0.6065.
In a highly bullish case, the gains could extend for XRP price to overcome the resistance due to the descending trendline and tag the upper band of the Bollinger indicator at $0.6617. This would set the pace for Ripple price to collect the sell-side liquidity residing above as it jolts to the $0.7000 psychological level. A decisive move above $0.6500 would invalidate the bearish thesis.
The fact that Ripple price tagged the aforementioned FVG during the January 2 crash suggests that there is no effective downward pull on XRP, also accentuating the bullish supposition.
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