XRP price remains in a bear market after plummeting by 22% from its highest point this year. Still, its strong technicals and the upcoming ETF deadlines signal a potential rebound.
Summary
- XRP price is preparing for a breakout as a falling wedge forms.
- Murrey Math Lines tool points to a surge to $4.2.
- XRP ETF approvals to be the main catalyst.
Murrey Math Lines point to XRP price rising
The daily timeframe chart suggests that the Ripple (XRP) price may be poised for a strong rebound this month. It has formed a falling wedge pattern whose two falling trendlines are nearing their convergence.
The coin has also settled at the strong pivot reverse level of the Murrey Math Lines (MML). MML is a tool used to identify potential support and resistance levels. It was created by dividing the price movement into an eight-part grid or octave.
The strong, pivot, and reverse, where it settled at is known for rebounds. Most importantly, it coincided with the double-bottom pattern at $2.7167 and the confluence of the falling wedge pattern.
Therefore, the double-bottom, falling wedge, and the MML position point to a strong rebound. The initial target level in case of a breakout is the year-to-date high of $3.6512, up by 30% above the current level.
The Murrey Math Lines points to an eventual rebound to $4.29, the extreme overshoot, which is about 55% above the current level. However, a drop below the ultimate support at $2.34 will invalidate the bullish XRP price forecast.
XRP price chart | Source: crypto.news
XRP ETF approvals to be the key catalyst
The main catalyst for the XRP price will be the upcoming deadlines for the XRP ETFs. Most of these deadlines will be in October, and Polymarket data shows that the odds of an approval are over 88%.
Therefore, investors will likely buy the coin ahead of the approvals as they expect strong inflows. Besides, recent data shows that the existing futures-based XRP ETFs are having strong demand from investors.
The same is happening in the futures market, where the open interest for CME contracts has jumped in the past few weeks. Most importantly, existing Bitcoin (BTC) and Ethereum (ETH) ETFs have had robust inflows since last year, meaning that there is strong demand for these assets.