In recent developments, crypto-focused investment firms are setting their sights on the XRP Exchange Traded Fund (ETF) in the United States. Following the successful introduction of Bitcoin and Ethereum ETFs, a new player in the market, Canary Capital, has filed for an XRP ETF by submitting Form S-1 to the US Securities and Exchange Commission (SEC) last week.
First to File For XRP ETF
The filing by Canary Capital has garnered significant attention within the crypto community, primarily because the firm was founded by Steven Mcclurg, the former Chief Investment Officer and co-founder of Valkyrie Fund. This move highlights increasing interest and competition in the crypto investment space.
In addition to Canary Capital, the asset management giant Bitwise Investment also filed for an XRP ETF by submitting Form S-1 to the US SEC on October 2, 2024. According to records from the Delaware Division of Corporations, Canary Capital was the first to file for an XRP ETF, marking a notable milestone in the crypto investment landscape.
Despite these positive developments, XRP is currently facing challenges in gaining momentum due to ongoing geopolitical tensions between Iran and Israel.
XRP Current Price Momentum
As of the latest data, XRP is trading near $0.588, experiencing a price decline of over 4.5% in the last 24 hours. During the same period, its trading volume surged by 65%, indicating increased participation by traders and investors amid the price decline. This suggests a heightened level of activity and interest in XRP, despite its recent struggles.
XRP Technical Analysis and Upcoming Trends
Expert technical analysis indicates that XRP is currently exhibiting bearish signals and may experience further price declines in the coming days. However, it is important to note that XRP is trading above the 200 Exponential Moving Average (EMA) on a daily time frame, which is generally considered an indicator of an uptrend.
Based on historical price momentum, if XRP closes its daily candle below the $0.568 level, there is a strong possibility of a price decline exceeding 10% in the coming days. Thus, traders and investors should keep a close watch on this critical level.
On-Chain Metrics
In addition to technical analysis, XRP’s on-chain metrics are also flashing bearish signals. According to on-chain analytics firm Coinglass, XRP’s Long/short ratio currently stands at 0.897, indicating a strong bearish sentiment among traders.
Furthermore, XRP’s future open interest has declined by 15%, suggesting that traders are liquidating their positions and hesitating to build new ones. This trend could impact XRP’s price dynamics in the near term, reinforcing the bearish outlook.
In conclusion, while the filing of XRP ETFs by Canary Capital and Bitwise Investment marks a significant development in the crypto investment space, XRP is facing several challenges that could impact its short-term price performance. Traders and investors should closely monitor technical indicators and on-chain metrics to make informed decisions.
