XRP News Today: ETF Hopes Boost XRP, but SEC Appeal Clouds Market Outlook

XRP Faces $0.5550 Rejection Amid Spot ETF Speculation and SEC Appeal Uncertainty

On Wednesday, October 16, XRP gained 1.07%, reversing a 1.20% loss from the previous session and closing at $0.5477. XRP outperformed the broader crypto market, which advanced by 0.52%, bringing the total market cap to $2.271 trillion. Investor hopes for an XRP-spot ETF drove XRP demand.

US XRP-Spot ETF Speculation Drives XRP Demand

On Wednesday, Bloomberg Intelligence Senior ETF Analyst Eric Balchunas shared news of Grayscale planning a Crypto basket-spot- ETF, stating,

“Grayscale is looking to put out the first ETF that will hold spot bitcoin, ether, solana and XRP by converting GDLC. Is this poss? Maybe. Bc btc and ether make up over 90% of holdings (see below) and there’s wiggle room for ETF to have small portion of illiquid assets it may well be approved. If so, it would leapfrog everyone in the race to put out a combo crypto ETF. Discount shrank a bit so some ppl clearly think this could work.”

Balchunas added that Grayscale has progressed the process by filing a request to convert the Digital Large Cap Fund (GDLC) into a crypto-spot ETF.

Grayscale plans the spot ETF to comprise 90% BTC and ETH, with the remaining 10% comprised of XRP, SOL, and AVAX. An approval could expedite the launch of an XRP-spot ETF, potentially boosting buyer demand for XRP.

SEC Appeal Uncertainty Limits XRP Gains

Despite Wednesday’s gains, uncertainty about the SEC’s plans to appeal rulings in the SEC v Ripple case limited the upside. Investors await the SEC’s Form C filing, which will give more details on the SEC’s appeal strategy. An appeal against the Programmatic Sales of XRP ruling could significantly affect market sentiment.

XRP Price Outlook: XRP-spot ETFs and Appeal Strategies

XRP may break out from $0.55 and target $1.00 if the SEC does not challenge the Programmatic sales ruling. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test. XRP reacted to the ruling, surging to a July 2023 high of $0.9327.

If the SEC accepts the ruling, the SEC may also approve applications for XRP-spot ETFs more swiftly.

Bitwise and Canary Funds have filed for XRP-spot ETF applications. However, XRP failed to mirror the November 2023 rally to $0.7503 in response to the fake news of BlackRock (BKL) filing an XRP-spot ETF application. The ongoing SEC versus Ripple case continues to impact investor sentiment and price trends.

Outlook

Investors should closely monitor the SEC’s appeal strategy, as the SEC’s Form C filing looms. The SEC’s appeal strategy will likely influence XRP price trends.

XRP Price Action

Daily Chart

XRP hovers below the 50-day and 200-day EMAs, affirming bearish price signals.

A breakout from the 200-day and 50-day EMAs could allow the bulls to test the $0.5739 resistance level. Furthermore, a break above the $0.5739 resistance level may signal a move toward the $0.6609 resistance level.

Ripple case-related news, SEC activity, and SEC vs. crypto case-related updates require consideration.

Conversely, a fall through the $0.50 level may bring the trend lines into play.

With a 14-day RSI reading of 48.52, XRP could drop below $0.50 before entering oversold territory.