Is the likelihood of XRP ETF approval increasing?

Nairobi (CoinChapter.com) - The approval of the Ethereum ETF on May 23 has sparked speculation about the possibility of an XRP ETF. Industry experts believe that the success of the Ethereum ETF may pave the way for other digital assets, with the XRP ETF expected to be the next ETF to be approved. Here are experts' views on the prospects of the XRP ETF.

Expert Insights on the Prospects of an XRP ETF

Analyst Brett Hill stressed the importance of the Ethereum ETF approval. He believes that the Ripple (XRP) ETF is a logical next step. Many in the community share Hill’s optimism. They believe that XRP’s growing popularity and market stability are key factors.

Excerpts from Brett Hill’s post on XRP

In addition, cryptocurrency enthusiast JackTheRippler predicted that XRP's market capitalization could reach $500 billion, which is consistent with the positive sentiment of the approval of the XRP ETF. XRP's ETF may increase its market visibility and liquidity and attract institutional investors.

Market performance boosts optimism

XRP has shown resilience amid market volatility and was trading at $0.5282 on May 24. This positive performance is supported by bullish momentum shown by technical indicators such as the Moving Average Convergence/Divergence (MACD) and the Relative Strength Index (RSI). If XRP can successfully break above the $0.5310 resistance level, it has the potential to climb to $0.5703, representing a respectable 8% gain.

XRP/USD 1-day price chart. Source: TradingView

The XRP Ledger (XRPL) ecosystem, especially its DeFi sector, could also benefit from an ETF. Projects such as the CTF token on the XRPL demonstrate significant growth potential. Jack Rippler noted that the CTF token could rise from 0.97 XRP to 374.25 XRP, driven by increased demand and limited supply. Such predictions highlight the positive knock-on effects that an XRP ETF could have on related projects.

If XRP can break the $0.5310 resistance, it could reach $0.5703. This would achieve a growth of 8% relative to the current level. However, if it fails to break through this resistance level, XRP might retrace to the support level of $0.5064 or even to the May 13 low of $0.4866.