Ripple – Here’s why a Spot ETF approval can send XRP’s price soaring

• XRP has remained below its neutral line over the last few weeks
• ETF applications could cause positive sentiment to spike when and if approved

The XRP ledger has undergone a notable transformation in its network usage over the past few months. In fact, recent analysis indicated that trading activities have significantly risen – A sign that there has been a shift beyond Bitcoin’s traditional payment functions.

Additionally, the submission of another application for a Spot ETF may enhance the utility of Ripple’s offerings even further.

A hike in user interest

Data from CryptoQuant highlighted a shift in user behavior on Ripple’s network.

Previously, the platform was predominantly utilized for payment transactions. This constituted approximately 88% of all activity earlier this year.

At the same time, the new OfferCreate feature has gained traction and is now equally prominent.

Source: CryptoQuant

Such a hike in OfferCreate transactions can be interpreted to imply a growing interest in trading activities.

This trend also seemed to highlight that users are engaging with Ripple to issue new assets and utilize DEX functionalities. The diversification of use cases beyond payments is promising for Ripple. Especially since it enhances Ripple’s appeal and boosts user engagement.

XRP attracts more ETF applications

More institutions are showing interest in launching spot XRP ETFs, boosting the prospects of XRP and by extension, Ripple.

For instance, according to reports, 21Shares submitted its Spot ETF application for XRP on 1 November. This application, which included a Form S-1 for Core XRP Trust shares, is set to be listed and traded on the Cboe BZX Exchange.

The filing is just the latest after previous applications by Bitwise and Canary Capital. If these applications receive approval from the U.S. Securities and Exchange Commission (SEC), more traders could be exposed to XRP directly.

This would align XRP with Bitcoin and Ethereum, both of which have Spot ETFs from various institutions. It’s worth pointing out though that w

The timing for XRP is good too. Especially since recent filings suggested that Ripple’s toughest legal battle phase with the SEC may be over after the ruling stated that XRP is not a security.

Potential trend for XRP

If XRP secures approval for a Spot ETF, its price could register a significant rally on the charts. In fact, technical indicators revealed that XRP seemed to be struggling to maintain levels above the 50-day and 200-day moving averages – Both around $0.55.

Also, the altcoin’s support was hovering around the $0.50-zone.

Source: TradingView

An ETF approval could trigger a breakout above these moving averages. If this happens, XRP could then test resistance levels near $0.60 or higher.

A successful breakthrough could see XRP targeting the psychological $0.75 mark and even the $0.85 range, if the buying pressure intensifies.

– Realistic or not, here’s XRP market cap in BTC’s terms

At the time of writing, the MACD and RSI indicators were fairly subdued. However, the sentiment could shift dramatically if the ETF approval goes through. Needless to say, this update can precipitate a bullish rally on XRP’s charts.