XRP Token Has Seen Increased Institutional Support as the Odds of a Spot XRP Exchange-Traded Fund (ETF) Approval Rise

The market's confidence has skyrocketed since approval odds skyrocketed from 65% to 85% in under two months.

The price of XRP has seen a strong rally in recent times, and institutional support for the token could propel it to new highs.

Technical analysis shows that XRP is approaching a crucial resistance level, but there are also key support levels to watch out for if the bears take over.

The legal battle between the SEC and Ripple over the sale of XRP to U.S. investors has put a spotlight on the crypto market.

The market's confidence in the approval odds of a spot XRP Exchange-Traded Fund (ETF) has skyrocketed since the approval closely soared from 65% to 85% in less than two months.

The legal dispute has also sparked interest in the potential for ETFs to provide a gateway for institutional participation in the crypto market.

Grayscale’s initiative to convert its XRP trust and begin a 45-day review process for the SEC was a major development.

The move follows the setbacks faced by several firms in applying for spot Bitcoin ETFs, leading to a legal challenge from Grayscale.

Moreover, Bitwise obtained formal acceptance to launch its physically-backed XRP ETP, expanding the options available to European traders.

These developments followed the SEC’s extension of the Franklin Templeton decision deadline to June 17, and investors are holding high hopes for an impending decision on spot XRP ETFs.

The approval numbers for a spot XRP ETF have risen incrementally since Grayscale and Bitwise went public with their applications to convert their XRP investment vehicles.

However, the candidates applying to launch these products are facing difficulties in securing approval for spot crypto ETFs.

Despite announcing their intent to launch Bitcoin ETFs in October 2021, several firms, including ARK Invest and Catheter Financial, are yet to receive approval for these products.

Apart from spot products, there is evidence of growing institutional exposure to XRP derivatives.

ProShares launched three XRP futures-based ETFs, including leveraged and inverse options, and these products are already trading in U.S. markets.

While these ETFs are not direct investments in XRP tokens, they provide a way for institutions to hedge price movements or amplify returns on their existing XRP exposure.

The technical analysis indicators suggest bullish price trends. The MACD indicator, commonly used to identify trends and potential turning points, indicates a buy signal after its main line crossed above the signal line.

This suggests that the bullish momentum is strong, and buyers are in control of the market.

The positive histogram expansion further indicates additional price growth potential as long as the MACD continues to trend upwards.

However, the emerging trendline, established earlier this year, remains a significant barrier to further price growth.

Market participants will be closely watching this price point to determine whether XRP can break out of this trendline and continue its ascent towards the $3.00 mark.

In the short term, traders anticipate profit-taking to slow down any rapid gains.

Crucially, the 50-day EMA provides support to prevent a steeper correction.

The price is currently holding at this level, and a breakdown could lead to a test of the 100-day EMA, which is closely followed by Fib support around $1.61.

The new leadership at the SEC has had a positive impact on consumer perception. On April 21, Chair Paul S. Atkins was approved to continue leading the commission.

The betting platform Polymarket shows a 79% likelihood that the SEC will approve an XRP ETF by the end of this year, and market trends indicate that the apex regulator could approve a spot product.

Despite the momentum, there are challenges ahead. According to Santiment, XRP has lost its social dominance over the last three months, which can constrain price changes driven by retail investors.