Ripple price slacks as Bitrue exchange explores impact of possible spot Bitcoin ETF approval on XRP

●Ripple price has refused to gain momentum despite broader market optimism instigated by possible spot BTC ETF approvals.

●XRP could extend the fall 2% to find support at $0.5442 before a possible correction.

●The bearish thesis will be invalidated once XRP price breaks and closes above the descending trendline around $0.6500 level.

Ripple (XRP) price remains stale, moving south despite broader market optimism and anticipation for potential spot Bitcoin exchange-traded funds (ETFs) approval. As the window for approval remains open, market participants cannot help but wonder what approval from the US Securities & Exchange Commission (SEC) would do, not just for the crypto top three, but also for other cryptocurrencies, including XRP.

Bitrue exchange explores impact of possible spot BTC ETF approval on XRP

As markets anticipate the potential approval and subsequent launch of spot BTC ETFs, Bitrue exchange is exploring the likely impact of such a development on XRP price.

While the post on X was presented as an open poll, the Bitrue trading platform had previously shared its view on “The Potential Impacts of a Bitcoin ETF Approval” in a blog. Acknowledging that the approval would revolutionize the cryptocurrency landscape, Bitrue notes that the SEC greenlighting the applications would mark a pivotal moment in the convergence of traditional finance and digital assets. Other value additions cited include:

●Democratizing access to crypto for both institutional and retail investors.

●Imminent inflow of capital into the crypto space, with conservative estimates predicting an initial deluge of between $5 billion to $10 billion within the first few months post-launch.

●Potential for price surge, driven by amplified trading volumes and heightened investor enthusiasm, enough to reshape market dynamics and solidify Bitcoin's position as a leading digital asset.

●Institutional validation and participation, symbolizing Bitcoin as a regulated investment asset within traditional financial markets.

Ripple price outlook amid heated spot BTC ETF narrative

Ripple (XRP) price continues to consolidate below the critical level of $0.5784, formerly an important support. With this level acting as a resistance, the payment token is sitting on robust support due to the lower band of the Bollinger indicator at $0.5512 and the horizontal line at $0.5442.

The trajectory of the Relative Strength Index (RSI) moving south points to a falling momentum, which coupled with the red histogram bars of the Awesome Oscillator (AO) in negative territory accentuates the bearish thesis.

Increased selling pressure could see XRP price descend further to test the $0.5442 support before a potential bounce in favor of the north. A break and close below this level could see Ripple price retest the Fair Value Gap (FVG) extending between $0.4927 and $0.5111.

XRP/USDT 1-day chart, Source: TradingView.

On the other hand, if investors seize the opportunity to buy XRP on the dip, Ripple price could push north, flipping the $0.5784 blockade into a support floor. Further north, the remittance token’s market value could confront the centerline of the Bollinger indicator at $0.6065.

In a highly bullish case, the gains could extend for XRP price to overcome the resistance due to the descending trendline and tag the upper band of the Bollinger indicator at $0.6617. This would set the pace for Ripple price to collect the sell-side liquidity residing above as it jolts to the $0.7000 psychological level. A decisive move above $0.6500 would invalidate the bearish thesis.

The fact that Ripple price tagged the aforementioned FVG during the January 2 crash suggests that there is no effective downward pull on XRP, also accentuating the bullish supposition.