- The XRP price witnessed renewed demand pressure at the bottom trendline of a falling channel pattern.
- Franklin Templeton recently updated its S-1 filing for its XRP ETF to remove the 8(a) clause and become automatically effective after a 20-day period if the SEC doesn’t intervene.
- Ripple has successfully raised $500 million in a new funding round, led by Fortress and Citadel Securities.
- Ripple just announced a major partnership with Mastercard, WebBank, and Gemini to implement the RLUSD settlement on the XRP Ledger.
XRP, the native cryptocurrency of the XRP Ledger, is up 7% during Wednesday’s U.S. market hours to trade at $2.36. While this uptick aligns with a broader market relief rally, the XRP price gained further momentum after Franklin Templeton updated its S-1 filing for an XRP Spot ETF, Ripple’s $500 million funding boost, major partnerships, and price action retested key support. Is a bullish recovery imminent?
Key Factors Bolstering Today’s Jump in XRP
The XRP price bounced over 7% on Wednesday to $2.36, as renewed optimism swept across the crypto market. The rebound came after a sharp sell-off earlier this week as Bitcoin sustained above the $100,000 level, which led to a relief rally among major altcoins.
However, XRP’s outperformance occurred in the context of several developments of Ripple and the wider XRP ecosystem:
- Ripple Raised a $500 Million Strategic Investment:
Ripple raises $500 million in a funding round led by Fortress and Citadel Securities, valuing the firm at $40 billion. The capital injection will be used to bolster Ripple’s liquidity solutions and grow its digital finance business, demonstrating strong institutional belief in Ripple’s long-term vision.
- Franklin Templeton Spot XRP ETF Plans:
The asset management company, Franklin Templeton, updated its S-1 registration and eliminated Section 8(a) language that would enable the SEC to delay approval. This set Franklin’s XRP ETF for a potential launch in November, providing investors with a way to expose themselves to XRP in a regulated manner.
Similar filing updates were also reported by Canary Capital and Bitwise, greatly inflating expectations of imminent approval.
- Ripple Collaborates with Mastercard, WebBank, and Gemini:
Ripple announced a new partnership between Mastercard, WebBank and Gemini to implement the RLUSD settlement on the XRP Ledger. The project will start with the Gemini XRP Credit Card, which enables fiat credit card payments with on-chain XRP Ledger settlement technology. Analysts anticipate that as soon as the RLUSD onboarding starts, XRP Ledger transaction volume could rise sharply.
With the combination of long-standing institutional support, ETF optimism, and growing real-world applications, XRP gains bullish momentum for a potential rebound.
XRP Price Heading for Major Support Test
Over the past week, the XRP price witnessed a sharp correction from $2.69 to $2.06—a 23.6% decrease—before today’s rebound. An analysis of the daily chart shows this upswing is positioned at the support trendline of a falling channel pattern.
Since late July, the coin price has been steadily resonating within two parallel trendlines, which act as dynamic resistance and support. While the pattern drives a steady downtrend, the bottom trendline has bolstered buyers with renewed bullish momentum for reversal. The previous has pushed the asset value over 20% before hitting key resistance.
Concerning the last price retest to the bottom trendline, the momentum indicator RSI shows a clear higher low formation, signaling intact demand pressure at this support.
Thus, if the support trendline holds, the XRP price could rise another 15% before challenging the channel resistance at $2.69.
On the contrary, if the coin price breaks below the lower trendline, the selling pressure would accelerate for a deeper correction.
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