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Simon Chandler
Author
Simon Chandler
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The XRP price has kept to the $0.5298 level today, marking a very slight 0.2% gain in 24 hours as the cryptocurrency market as a whole falls by 1%.
This incremental lift isn’t enough to save XRP from medium-term drops, however, with the altcoin down by 12% in a week and by 0.5% in a month.
Yet the longer term picture looks better for XRP, with investment firm Canary Capital filing for a spot-based XRP ETF yesterday, following in the footsteps of Bitwise.
While the SEC’s recent appeal against Ripple puts the idea of an XRP ETF into doubt for now, the early interest in launching an exchange-traded funded suggests that the coin’s market could really take off once the appeal finds a resolution.
XRP Price Forecast: Canary Capital Files for Spot XRP ETF with SEC — Will This Fuel a Price Rally?
XRP remains in the middle of a downtrend, yet the fact that its support (green) and resistance (red) levels are rising in parallel would suggest that this trend shouldn’t last for too long.
What may happen is that the coin could start to recover more concertedly once its relative strength index (purple) gets closer to 30, from which it will bounce up.
We may be close to this point, given that XRP’s 30-period moving average (orange) looks like it’s hitting a bottom in relation to the 200-period average (blue).
Its trading volume remains relatively healthy, at around $1 billion today, but it still seems that whales are likelier to sell the coin at the moment.
But as we note above, the longer term picture is more hopeful, with yesterday’s XRP ETF filing from Canary Capital pointing to a future in which demand for the altcoin is growing.
Indeed, Canary founder Steven McClurg said yesterday that his firm submitted the filing in expectation of a “more progressive regulatory environment coupled with growing demand from investors.”
This suggests that the big money within crypto doesn’t think the SEC’s appeal really changes XRP’s legal and regulatory status.
For instance, lawyer Jeremy Hogan suggested in response to the appeal that it doesn’t affect last year’s ruling that, in and of itself, XRP is not a security.
And even if an appeal were granted, and even if the SEC were successful, Hogan expects that this would result only in an additional fine for XRP.
As such, Canary’s filing supports the notion that Ripple and XRP still have a bright future.
And assuming that the wider market continues to recover from recent setbacks (e.g. escalation in the Middle East), the XRP price could hit $0.60 by the end of October.
Emerging Small-Cap Altcoins
Given that XRP holders will likely have to play the long game (again), many traders would prefer to invest in other alts, particularly those with the potential for quick above-average rallies.
This would also point towards presales, with the biggest token offerings often resulting in big openings when the corresponding coins list for the first time.
Several presale tokens fit this bill, but one of the most interesting is Crypto All-Stars (STARS), a new ERC-20 coin that has raised more than $2 million in its sale.
Crypto All-Stars is attracting investors because it will be the first project in the space to provide a ‘MemeVault’.
As its name suggests, a MemeVault is a storage protocol in which holders of any meme token can stake their funds.
Crypto All-Stars can offer such a vault because it uses the ERC-1155 multi-token standard, enabling to tokenize any coin, even tokens not running on the Ethereum blockchain.
What’s bullish about this is that it gives Crypto All-Stars – and STARS itself – a much bigger addressable market than many of its peers, with users receiving greater rewards for staking any coin if they hold greater amounts of STARS.
This could lead to massive demand for STARS, which has a max supply of 42.069 billion.
Investors can join the coin’s sale by going to the official Crypto All-Stars website, where 1 STARS currently costs $0.0014887.
This price will rise in just under a day and will continue rising until the sale ends.
And once it lists on exchanges it could go crazy, such is its early popularity.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
