Speculation surrounding the Ripple ETF has triggered a wave of FOMO
Investor sentiment around the performance of Ripple (XRP) has improved significantly amid the launch of the Grayscale trust.
The recent announcement has triggered a wave of rumors about the imminent arrival of XRP ETFs. Here's a look at how the rise in positive sentiment could affect the altcoin's price.
Ripple ETF may become a reality
On September 12, Grayscale, one of the world's leading digital asset managers, announced the launch of a trust on XRP in the United States. Following the announcement, the token's price jumped from $0.53 to $0.58.
Although the altcoin is trading around $0.56 at the time of writing, onchain data shows a significant increase in weighted sentiment. This metric helps to understand whether the market is leaning towards bullish or bearish sentiment towards the asset.
The recent rise suggests that previously cautious market participants are becoming increasingly optimistic about the future of XRP.
A historically high reading of this metric is often a precursor to a short-term price decline. If this trend continues, XRP could face a potential correction.
Network growth supports this prediction. Since Grayscale's announcement, the number of new addresses on the XRP Ledger (XRPL) has skyrocketed, indicating increased demand.
The number of new addresses with successful transactions, meanwhile, has decreased. This could mean that Ripple could lose much of its recent gains.
XRP price forecast: Imminent bearish reversal
Over the past 24 hours, the price of XRP has risen and outperformed other cryptocurrencies in the top 10. However, the Chaikin Money Flow (CMF) indicator on the daily chart is still showing negative values, hinting at sellers' dominance.
“Miracle Oscillator” is also in the minus despite the green bars on the histogram. Under such conditions, the price of XRP may drop to $0.52 in the near future.
However, if the bulls gather their strength, they can push the altcoin to $0.60.
