Is it real, or is it fake? Rumors of Black Rock ETF filing made the price blip. Bitcoin had its fair share of false ETF alarms before, and now it’s XRP’s turn, causing over $6 million in liquidations due to the subsequent market frenzy. Can we say it is a sneak peek into an upcoming XRP ETF, or are we in for another rollercoaster of fake news!?
How Can XRP Stay Away from ETF Buzz?
The initial announcement hinted at BlackRock registering an XRP ETF, catapulting XRP’s price by 12% to $0.73 within 30 minutes. However, the news was quickly debunked as fake by Bloomberg’s ETF analyst, Eric Balchunas, who confirmed the falsity after contacting BlackRock.
Despite the swift correction, XRP’s trading volume experienced a significant shift. The Coinglass data revealed a massive sell-off in response to the false news, resulting in $6.91 million liquidated within 24 hours. XRP stands at $0.66, marking a rollercoaster ride following the fabricated ETF buzz.
The fake news of BlackRock’s XRP ETF filing raised skepticism, given BlackRock’s conservative stance in the crypto sphere, especially amidst XRP’s ongoing legal battle with the SEC. Unlike Bitcoin and Ether, XRP lacks a substantial regulated futures market in the U.S., casting doubt on BlackRock’s purported interest.
While Ethereum witnessed a surge in its price to $2,064 following BlackRock’s iShares Ethereum Trust application in Delaware, the authenticity of BlackRock’s spot Bitcoin ETF application remains under scrutiny by the SEC. Though the XRP community finds it a good sign, others find it a risky trade now.
In light of the faked listing, experts doubt that BlackRock, known for being cautious in the crypto world, would consider an XRP ETF due to its legal issues with the SEC. Unlike Bitcoin and Ether, XRP lacks a significant regulated futures market in the U.S. On the other hand, James Seyffart confirmed that the spot Ether ETF is genuine and officially acknowledged through Nasdaq’s submission to the Securities and Exchange Commission.
XRP’s Market Impact and Technical Outlook
Amidst the tumult caused by the false ETF news, XRP managed to maintain its position above crucial Exponential Moving Averages (EMAs), signaling a bullish trend. Analysis suggests that an upward move to $0.6720 might pave the way for reaching the $0.7047 resistance level. Conversely, a drop below the $0.65 mark could trigger a test of the $0.6354 support level.
Furthermore, the Relative Strength Index (RSI) reading 63.17 points toward a potential move to $0.67 before entering the overbought territory.
On the flip side, in the ongoing SEC v Ripple case, the court instructed the SEC and Ripple to conclude remedies-related discovery by February 12, 2024. Ripple’s remedy brief is due on March 13, the SEC’s on April 12, and the SEC’s response to Ripple’s brief by April 19, 2024. This case remains pivotal for XRP’s path amid market uncertainty.