- XRP price declined 5% following US GDP data showing economic contraction, but technical indicators suggest potential growth ahead.
- Analysts identify a bullish “falling wedge” pattern that could drive XRP price to $3.74, representing a 71% increase from current levels.
- Approval odds for spot XRP ETFs have increased to 85% according to Bloomberg analysts, potentially bringing significant institutional investment.
XRP has experienced a 5% drop in the last 24 hours following disappointing US GDP data that indicated an economic slowdown. Despite this short-term decline, market analysts point to strengthening fundamentals and growing investor optimism around a potential spot XRP ETF approval that could push the cryptocurrency back toward its April high of $2.36.
Technical analysis reveals XRP is currently trading within a falling wedge pattern, which typically signals a bullish reversal. This pattern features two converging trend lines connecting lower lows and lower highs, indicating weakening downward pressure. If XRP breaks above the upper trendline at $2.40, traders could target $3.74 next—a potential 71% gain from current prices.
The relative strength index (RSI) remains above the midline, suggesting market conditions continue to favor upward movement. For sustained recovery, XRP must maintain support at $2.20 before challenging resistance between $2.80 and $3.00.
Several traders remain bullish on XRP’s prospects. Analyst Dark Defender stated that the current correction follows an Elliott Wave pattern that will eventually see XRP "continue its climb to the top." Similarly, trader Allincrypto predicted XRP is "heading to $19.27" based on the falling wedge pattern breakout, noting: "Where we are pulling back is textbook perfect, and we had highlighted a falling wedge that was present on XRP that ultimately was just going for a continuation to $19.27."
ETF Approval Chances Improve Significantly
Bloomberg senior ETF analysts have increased their estimated probability for spot XRP ETF approvals to 85%, up from 65% two months ago. This improved outlook follows leadership changes at the Securities and Exchange Commission (SEC). The analysis covers ETF applications from Grayscale, 21Shares, WisdomTree, Bitwise, Canary, and Franklin Templeton.
Betting markets reflect similar optimism, with Polymarket showing Ripple-etf-approved-in-2025?tid=1739542416703″>80% odds for XRP ETF approval by December 31, representing a 17% improvement from the 63% probability recorded on April 23.
Meanwhile, the SEC has postponed its decision on Franklin Templeton’s spot XRP ETF application, setting a new review deadline for June 17. Approval of these ETF products could attract significant institutional capital to XRP, potentially driving price appreciation, though specific approval timelines remain uncertain.
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