Technical Analysis

Is Ripple Ready For A Bullish Breakout?Sep 12, 2024

Grayscale to Launch First U.S. XRP Trust, Paving the Way for Potential ETF

There were report that Grayscale is launching the first U.S. XRP Trust Fund, offering accredited investors direct exposure to XRP. This move is seen as a step towards an XRP exchange-traded fund (ETF). Grayscale has a history of pioneering crypto financial products, including converting its Bitcoin Trust into a spot ETF after a successful lawsuit against the SEC in 2023.

Now, looking at Ripple’s Elliott Wave structure, its unfolding a five-wave bullish impulse on the weekly chart. Currently, it’s trading in 6-year higher degree consolidation; ideally, it’s a larger bullish triangle in wave four, which can be coming to an end in next few months. So possibly we can see a break higher.

Is Ripple Ready For A Bullish Breakout? XRPUSD Weekly Chart
XRPUSD Weekly Chart
Is Ripple Ready For A Bullish Breakout? Basic Elliott Wave Bullish Triangle Pattern
Basic Elliott Wave Bullish Triangle Pattern

A triangle appears to reflect a balance of forces, causing a sideways movement that is usually associated with decreasing volume and volatility. The triangle pattern contains five overlapping waves that subdivide 3-3-3-3-3 and are labeled A-B-C-D-E. The running triangle is a region of horizontal price movement, a consolidation of a prior move, and it is composed of “threes.” That means each of the A-B-C-D-E waves have three subwaves. The triangle pattern is generally categorized as a continuation pattern, meaning that after the pattern completes, it’s assumed that the price will continue in the trend direction it was moving before the pattern appeared. However, triangles also indicate that the final leg is coming before a reversal and that’s why triangles are labeled in wave B, wave X or wave 4.

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