XRP Sees Renewed Interest as Canary Capital Files for XRP ETF

XRP, the digital asset associated with Ripple, is garnering attention once again as Canary Capital becomes the latest firm to file for an XRP-based exchange-traded fund (ETF). This development comes amidst ongoing legal battles and price fluctuations, signaling a potential shift in the cryptocurrency’s market positioning.

ETF Filing Sparks Optimism

Canary Capital’s recent filing for an XRP ETF with the Securities and Exchange Commission (SEC) marks a significant step towards mainstream adoption of the cryptocurrency. Following a similar move by Bitwise just a week prior, this filing indicates growing institutional interest in XRP despite regulatory uncertainties.

The proposed ETF aims to simplify investor access to XRP by tracking its value using the CME CF Ripple index. Canary Capital plans to utilize a combination of secure cold and hot wallets for XRP management, addressing concerns about custody and security.

A spokesperson for Canary Capital expressed confidence in the evolving crypto market, stating, “We’re seeing encouraging signs of a more progressive regulatory environment coupled with growing demand from investors for sophisticated access to cryptocurrencies beyond Bitcoin and Ethereum.”

Ripple’s Legal Challenges and Market Response

While the ETF filing has sparked optimism, XRP continues to face legal hurdles. The SEC recently appealed a court ruling in its case against Ripple Labs, challenging the decision that only Ripple’s institutional XRP sales were unregistered securities offerings. This ongoing regulatory uncertainty may delay ETF approval until 2025 or later.

Despite these challenges, XRP has shown resilience in the market. On Tuesday, October 8, XRP advanced by 0.47%, outperforming the broader crypto market, which saw a slight decline of 0.06%.

XRP/USD Technical Analysis: XRP Coiling for Potential Breakout

As of the latest data, XRP is trading at $0.5320, hovering near the 100-hourly Simple Moving Average. The cryptocurrency has been consolidating in a tight range, with key resistance levels at $0.5450 and $0.5500.

Technical indicators suggest a potential bullish momentum if XRP can clear these resistance levels. The hourly MACD is gaining pace in the bullish zone, while the RSI is above the 50 level, indicating growing positive sentiment.

However, analysts caution that failure to break above $0.5360 could lead to another decline, with support levels at $0.5200 and $0.5165. The cryptocurrency market remains highly volatile, and investors are advised to exercise caution.