For more than a month, the XRP bulls have been defending the $2.75 support level, despite the bears’ increasing pressure. According to the XRP price prediction, the token will hold above $3 if it manages to successfully defend the support level until the XRP ETFs are approved, and institutional capitals flow.
After dipping to $2.69, XRP is currently consolidating near $2.75. Given that Ripple’s token recovers from this position, there is a high chance that XRP will reach and sustain $3.
XRP defends $2.75 for more than a month
Ripple’s token XRP has been on a downtrend since early August, making lower highs. The bears kept adding more pressure on the bulls with every attempt to push the prices past the previous high. Although the bulls did not have the strength to establish higher highs, they did not let XRP crash below the support at $2.75.
As shown in the chart below, the excessive bear pressure forced XRP inside a descending triangle, where it made lower highs throughout the past month. The descending triangle forms during consolidation when sellers keep forcing lower highs, but buyers defend a key support. The pattern usually resolves with a downside breakout once support finally fails.
However, as the pattern is not complete, XRP price will form another lower high and break above $3, but it will drop further, following the zig-zag pattern as shown above. The MACD indicator, which is in the negative zone, is heading in the right direction towards the positive area. This indicator supplements the fact that XRP will form a new lower high close to $3. However, the question is will XRP will sustain above $3.
XRP ETF approval could sustain XRP above $3
October will be an important month for XRP as the approval of major ETFs are scheduled during mid October. Once these ETF are approved, there will be fresh institutional and retail capital flowing into XRP and these could keep the prices above $3 level.
The U.S. Securities and Exchange Commission (SEC) has a packed schedule: Grayscale’s application decision is set for October 18, followed closely by Canary Capital on October 19 and WisdomTree on October 25. Looking further ahead, Franklin Templeton’s XRP ETF decision has been postponed to November 14, while REX/Osprey’s XRPR already made its debut on September 18, recording nearly $38 million in first-day trading volume.
