Ripple (XRP) is experiencing a surge in positive sentiment ahead of the upcoming launch of the Grayscale Trust for the cryptocurrency. As excitement grows, market participants are positioning themselves for potential gains.
This development has sparked speculation about a possible XRP Exchange Traded Fund (ETF) in the US. Here’s how the altcoin’s price could react as this sentiment continues to unfold.
Ripple ETF Rumors Spread
On September 12, Grayscale, one of the largest digital asset investment managers globally, announced the launch of its XRP Trust in the US. Following the announcement, XRP’s price quickly surged from $0.53 to $0.58.
Although the price has since settled to $0.56, on-chain data from Santiment reveals a significant spike in Weighted Sentiment, reaching its highest level in over a month. Weighted Sentiment tracks social volume to gauge whether the market is leaning bullish or bearish on a project.
A surge in this metric indicates a high volume of positive comments, posts, or messages, while a decline suggests growing pessimism. The recent spike signifies that previously cautious participants are now increasingly optimistic about XRP’s future prospects.
Read more: XRP ETF Explained: What It Is and How It Works
In crypto terms, this is known as the Fear of Mission Out (FOMO) — possibly on the next crypto ETF. Regarding this development, Doctor Crypto, an analyst on X, opined that the XRP ETF might come sooner than expected.
“Today Grayscale announced the first XRP trust. Most likely, in 4-8 months, you will see the first XRP ETF,” Doctor Profit said.
Historically, extremely high positive sentiment often leads to a short-term price decline. If this trend continues, XRP could face a potential price drop in the near future.
Supporting this outlook, the Network Growth metric aligns with this bearish bias. Following Grayscale’s announcement, the number of new addresses entering the XRP Ledger (XRPL) surged, indicating growing demand for XRP.
Yet, the number of new addresses with successful transactions has since decreased, suggesting XRP’s price might erase more of its recent gains.
XRP Price Prediction: Bearish Reversal Imminent
XRP’s price increase over the past 24 hours allowed it to outperform other top 10 cryptocurrencies. Despite this, the Chaikin Money Flow (CMF) on the daily chart remains in the negative region.
This negative CMF reading suggests that XRP’s distribution still exceeds accumulation, indicating a potential price decline. Similarly, the Awesome Oscillator (AO) is also in the negative zone, even though it shows green histogram bars.
The AO measures momentum, and while a positive reading signals bullish momentum, the current negative reading implies that bulls lack the strength to sustain or intensify the price increase. Given these conditions, XRP’s price could drop to $0.52 in the coming days.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
On the flip side, XRP could defy the bearish trend. If this happens, the uptrend may continue, potentially pushing the cryptocurrency’s value to $0.60.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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Victor Olanrewaju
https://beincrypto.com/xrp-etf-hopes-sparks-fomo/
2024-09-13 14:30:00
