- MEMX has filed an application with the SEC for a spot XRP ETF.
- The fund will classify XRP as a “commodity trust,” different from Grayscale’s application.
- Analyst Ali Martinez claims that the TD Sequential is flagging a buying signal.
On Monday, the Members Exchange (MEMX) sent in a filing to the United States Securities and Exchange Commission (SEC) to list and trade an XRP-based investment product—a spot XRP ETF.
This move comes after a similar plan from Grayscale Investments, who wants to turn its existing XRP Trust into an exchange-traded fund (ETF).
XRP ETF as “Commodity Trust” Could Boost Approval
Unlike Grayscale, MEMX wants to classify XRP as a “commodity trust,” putting it with approved spot Bitcoin and Ethereum ETFs.
This way of categorizing XRP could up its chances of regulatory approval, especially since the SEC has already approved crypto ETFs set up like this. If approved, an XRP ETF could really increase institutional adoption and liquidity for the token.
Related: XRP Braces for SEC Meeting—Policy Shift, Appeal Fate Price Reaction in the Balance
Analyst Sees Bullish XRP Momentum Building
Meanwhile, well-known analyst Ali Martinez said that XRP could soon become bullish, getting ready for a rebound.
The TD Sequential indicator for the cryptocurrency on the four-hour chart shows that buyers are getting stronger, giving off a buy signal. The closer the altcoin gets to the $3 price tag, the more resistance it faces from sellers.
XRP Price Nears Key Resistance Level
CoinMarketCap data shows XRP trading at $2.55 at press time, down almost 5% in the last 24 hours. The cryptocurrency has dropped below the 20-day exponential moving average (EMA), which used to be a major support area for the digital asset’s price action.
The daily chart for XRP/USDT on Binance suggests traders are unsure, with strong selling pressure near the $3 price tag. Also, getting above $3.5 could start a strong bullish move for the altcoin. In the meantime, the closest support level is at $2.40, while stronger support is at $2.00.
Technical Indicators Mixed for XRP
The Relative Strength Index (RSI) for the XRP price action is at 43.29, meaning XRP is in neutral to slightly bearish territory. If the RSI falls below 40, it may signal oversold conditions and a potential bounce.
Related: XRP Eyes Breakout: Fibonacci Levels and SEC Decision in Focus
On the other hand, the MACD line (-0.0357) is slightly below the signal line (-0.0515), showing weak bearish momentum. If the MACD line (blue) breaks above the signal line (red), it could confirm a trend reversal.
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