Close Menu
You have not selected any currencies to display

Why is XRP price up today?

4 Mins Read

XRP experienced a slight recovery from the recent market downturn, gaining 6% over the past 24 hours to reach a price of $2.24.

The altcoin is now trading 18% above its low of $1.89 over the last day, as the overall sentiment in the crypto market shows signs of improvement.

XRP/USD daily chart. Source: TradingView

Let’s explore the main factors contributing to today’s rebound in XRP’s price.

ETF Filing by Franklin Templeton

A notable catalyst for the surge in XRP’s value is Franklin Templeton’s recent filing for an XRP ETF in the United States.

Key insights:

  • On March 11, the California-based investment firm submitted an S-1 registration form with the US Securities and Exchange Commission (SEC) to introduce a spot XRP ETF.

  • Franklin Templeton is a significant global asset manager, overseeing $1.5 trillion in assets.

  • They have joined a growing roster of financial powerhouses like Bitwise, Grayscale, and WisdomTree, all of whom are pursuing XRP-based ETFs.

  • This development reflects a robust endorsement of XRP’s viability as a mainstream investment option.

  • The news has sparked speculation about substantial capital inflows that could drive XRP prices into the double digits.

“Franklin Templeton has filed the 17th XRP ETF, which alone manages $1.53 trillion in assets,” noted a pseudonymous XRP analyst in a March 12 post on X.

“Just imagine when all are approved. Achieving double digits for XRP will be a piece of cake.”

Currently, the odds of a US spot XRP ETF being approved in 2025 stand at 76% on Polymarket.

XRP ETF approval odds on Polymarket. Source:Polymarket

If approved, it could enhance XRP’s credibility and potentially attract billions in investments, according to analysts.

Despite the SEC postponing decisions on other XRP ETF applications until May 2025, Franklin Templeton’s involvement—given its stature—has instilled greater market confidence, aiding XRP’s price rebound.

MVRV Indicator Indicates Potential Price Floor

In addition to external factors, onchain data supports a positive outlook for XRP’s price recovery.

Key points include:

  • Metrics such as the Market Value to Realized Value (MVRV) ratio suggest that XRP may have reached its bottom.

  • The MVRV ratio assesses the market cap of XRP relative to the value of coins at their last transaction, helping to determine if the asset is overbought or oversold.

  • According to data from Santiment, XRP’s 30-day MVRV ratio has dropped to a low of -16%, the lowest since April 2024.

XRP 30-day MVRV. Source: Santiment

  • The chart illustrates that XRP is in a zone typically associated with accumulation, indicating that selling pressures may have eased.

  • Historically, XRP has often seen price reversals when the 30D MVRV dips below 10%.

XRP Price Aiming for V-Shaped Recovery to $2.64

The price patterns of XRP have been forming a V-shaped recovery on the four-hour chart since March 6.

  • A V-shaped recovery is a bullish pattern that emerges when an asset rebounds sharply after a significant decline.

  • XRP seems to be following this pattern, currently trading below a key resistance zone between $2.30 and $2.45, where the main simple moving averages (SMAs) are located.

  • For bulls, the next step is to push XRP beyond this resistance area to increase the likelihood of the price climbing to the neckline at $2.64, completing the V-pattern.

  • Achieving this V-shaped recovery could yield a 20% increase from the current price level.

XRP/USD daily chart. Source: TradingView

  • The relative strength index has climbed from oversold conditions at 27 on March 10 to 44 on March 1, indicating a build-up of bullish momentum.

This article does not deliver investment advice or recommendations. Each investment and trading action carries risks, and individuals should conduct their own research before making any decisions.