The XRP community is on high alert as growing speculation surrounds the potential approval of a spot XRP exchange-traded fund by the U.S. Securities and Exchange Commission. Market watchers believe such a move could trigger a significant price rally, pushing XRP toward the $10 mark and positioning it as one of the top cryptocurrencies by market capitalization.
A similar development occurred earlier with the launch of spot Bitcoin ETFs. These products received inflows worth $6.4 billion in two months, raising the price of Bitcoin by 55 percent. Analysts believe that if an ETF is approved, XRP will follow suit. The first price target is between $2.51 and $3.90 after several weeks of listing.
Financial institutions have estimated that an XRP ETF could attract $8 billion worth of investments. Based on the market cap multiplier theory, Crypto expert Zach Rector has estimated that XRP’s value could reach the highest of $15 given proper demand. An even less ambitious scenario would see XRP hit $10, which would put Ripple’s market cap at approximately $589 billion, greater than Ethereum.
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Technical Indicators Point to Breakout Potential as Sentiment Builds
The recent technical analysis supports this outlook, as XRP has formed a bull flag on the weekly chart, typically a signal for another major breakout. Between October 2024 and mid-January, XRP surged 518 percent. A similar rally could take the price toward $17 if the pattern plays out entirely.
Apart from this, the fact that the Relative Strength Index is at 57 means the bullish momentum is not in jeopardy. However, the declining slope emerging in the Average Directional Index indicates that the current direction is not strong, which means there could be temporary resistance to breakout.
Source: Polymarket
The momentum has been gaining ground since after the SEC closed its lawsuit with Ripple. Bloomberg analysts cite an 85% likelihood of approval for spot ETF, while Polymarket data move to 80 percent. These increasing probabilities have created investors’ confidence and interest in the market.
If it gets the green light, XRP would be the first US-based altcoin to trade as a spot ETF on Wall Street. This first-mover advantage may draw institutional capital and greatly drive demand.
Conclusion
With rising institutional interest and bullish technical signals, approving a spot XRP ETF could propel the token toward the $10 level. The market is preparing for a significant shift as XRP positions itself for a possible breakout.
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