XRP Poised for Potential ETF Breakthrough

The cryptocurrency landscape is shifting its focus, with XRP emerging as a standout contender. While Bitcoin has long dominated institutional attention, XRP is now capturing the spotlight as it overcomes significant technical barriers. A key driver behind this momentum is the growing anticipation that U.S. regulators may soon approve the first spot exchange-traded funds (ETFs) dedicated to the asset. Several major investment firms have already submitted their applications, and the necessary technical groundwork appears to be in place, setting the stage for XRP to become the next institutional-grade investment vehicle.

Concrete developments are fueling the current market surge. Applications for spot XRP ETFs have been formally filed with the U.S. Securities and Exchange Commission (SEC) by prominent asset managers including Franklin Templeton, 21Shares, Bitwise, and Canary Capital. A significant indicator of progress emerged when these prospective funds were listed as "active and pre-launch" on the website of the Depository Trust & Clearing Corporation (DTCC). Market participants often interpret such a listing as a precursor to imminent regulatory approval. Speculation suggests that an XRP ETF from Canary Capital could launch as early as this week.

This news triggered a substantial buying spree. Trading volume skyrocketed by 14.2 percent, reaching a massive $5.8 billion within a 24-hour period. During this flurry of activity, ownership of more than 110 million XRP tokens changed hands. The price action reflected this optimism, climbing from a low of $2.10 last Friday to approximately $2.54—a notable gain of 7 to 11 percent.

Should investors sell immediately? Or is it worth buying XRP?

Technical Breakout and Major Holder Accumulation

Market data reveals a telling divergence in investor behavior. While smaller wallets have been distributing their holdings, the largest market participants are accumulating. So-called "Mega Whales," entities holding between 100 million and 1 billion XRP, have added roughly 1.27 billion XRP to their coffers since mid-October. This pattern of accumulation by the largest holders typically signals strong, long-term bullish conviction.

From a chart perspective, the outlook is also encouraging. XRP has successfully broken above a short-term descending trendline, a classic technical signal that often precedes further price advances. However, the digital asset continues to trade below its 100-day and 200-day moving averages, indicating that a sustained long-term uptrend has not yet been fully confirmed. The next critical resistance level to watch is at $2.65, which aligns with the 200-day average. Technical analysts are also observing a potential "Bullish Flag" formation on the charts, a pattern that could foreshadow a powerful upward move.

The Path Toward $3 and Beyond

The recent resolution of the U.S. government funding impasse has revived hopes that the SEC can now proceed more efficiently with its backlog of cryptocurrency-related applications. With the prospect of ETF approvals on the horizon, many traders are already setting their sights on the $3 price level as the next logical target. Should these ETF products receive the green light, the market could witness a significant influx of institutional capital into XRP, potentially exerting substantial upward pressure on its price and overall market capitalization.