•The outlook for the price of Ripple (XRP) in the foreseeable future is still not promising after the launch of Bitcoin Spot ETFs in major US financial markets.
•The last price reading for Ripple was approximately $0.60, and the price is fluctuating slightly near this level during the day, as the price action of the prominent altcoin earlier collided with strong resistance at the 21-day moving average indicator line (SMA-21). Its 50-day counterpart (SMA-50) is at $0.6060 and $0.6160, respectively.
•Chart of the price of the XRP/USD pair - Source: TradingView website The failure of the price of the XRP currency to breach this upward resistance comes in conjunction with the rebound of the price of Bitcoin (Bitcoin-BTC) from its highest levels recorded in more than two years earlier today above the $49,000 level.
•The last reading of the price of Bitcoin was approximately $46,000, and this decline was due to some investors selling their holdings to reap profits despite the huge trading volumes of ETFs for spot BTC trading during the first days of their launch.
•The future of XRP, and will this currency have its own ETF?
•XRP price movements are also met with strong resistance in the form of an extended downtrend line since last November.
•XRP/USD price chart - Source: TradingView The retracement of price movements downward whenever it touches this downward trend line and the two moving average indicators on the 21- and 50-day time frame (SMA-21&50) indicates the confirmation of the downward trend that has been extending since the beginning of 2024 from a technical analysis perspective. ; This is after price movements breached the previously formed pennant technical pattern in a bearish direction.
•XRP/USD price chart - Source: TradingView The XRP price chart analysis also indicates the possibility of retesting the January lows just above $0.50 in the coming weeks.
•Naturally, the price expectations of the crypto markets as a whole in the medium term tend to be optimistic about achieving new gains during the year 2024, so it is likely that the positive atmosphere of the aforementioned funds will contribute - significantly - to increasing long-term purchasing pressures in the Bitcoin market during the current year, no. Especially with the approaching event of halving the rewards for issuing BTC transaction blocks, which will contribute to reducing selling pressure from Bitcoin miners.
•Moreover, macroeconomic factors are likely to provide favorable conditions during 2024, although the timeline for the expected reduction of interest rates by the Federal Reserve remains ambiguous, in addition to that the recent US Consumer Price Index (CPI) data exceeded expectations. Slightly, which casts doubt on the possibility of achieving expectations indicating a reduction in interest rates starting next March.
•It is noteworthy that the price of the Ethereum currency (Ethereum-ETH) continues to rise as a result of optimism regarding the possibility of approval to establish an exchange-traded fund for spot ETH trading (Ethereum Spot ETF) by next May. The impact of these positive conditions may extend to XRP, which may push its price higher. It may also benefit from its own favorable circumstances, most notably the possibility of Ripple Labs finally resolving its ongoing legal dispute with the Securities and Exchange Commission (SEC) in its favor.
•Although XRP will not be the next digital currency to obtain its own ETF, a fund of this type may be launched soon, as analysts believe that the SEC’s approval to create exchange-traded funds for the BTC currency opens the door to creating ETFs specifically for trading in other digital currencies.
•If Ripple emerges victorious from its legal dispute with the Commission, the uncertainty surrounding the possibility of XRP trades being considered unauthorized transactions in securities will dissipate, making it likely that the issuers of these funds will rush to submit applications to create ETFs linked to XRP.
•Finally, there is a belief that the price of Bitcoin will rise more than twice its current price to reach the $100,000 barrier this year, which also makes it likely that the price of XRP will rise above the $1.0 level again.
•The Bitcoin ETF project provides an interesting alternative currency. Ripple (XRP) and Bitcoin (BTC) have great growth potential - as we mentioned earlier - but the newly launched alternative currency BTCETF of the Bitcoin ETF project may outperform them in terms of performance during the year 2024. This alternative currency is designed to provide traders with the potential to earn high returns upon reaching several milestones related to the launch of spot Bitcoin ETFs through lower transaction fees and an innovative burning mechanism.
•The next two main stages are for the value of financial assets managed through spot Bitcoin ETFs to cross the $1 billion mark and for the price of BTC to cross the $100,000 level and stabilize above.
•Therefore, proponents of BTCETF see it as providing a double opportunity to earn returns, as they believe that the SEC’s approval of the funds will cause Bitcoin prices to double or triple during 2024.
•Meanwhile, BTCETF's current market cap of $12.45 million is likely to multiply tenfold, according to crypto analyst ClayBro. For more information about the Bitcoin ETF project, visit the DEXTools website.
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