XRP ETF rumours spur 15% hike, but is a bullish Q2 REALLY on the cards?

• A latest replace spurred speculations across the approval of an XRP ETF
• Whereas the short-term outlook is likely to be constructive, XRP stays inclined to market dangers

XRP’s weekly rebound from its sub-$0.95-levels was triggered by a high-impact FUD flush. Nonetheless, it could look like a calculated re-accumulation play, quite than a random opportunistic commerce.

The truth is, the transfer coincided with broader sentiment rotation following key regulatory headlines. Particularly, the affirmation of Paul Atkins as Chair of the U.S. Securities and Trade Fee (SEC) on 9 April. For sure, this has intensified market hypothesis a few potential shift within the Fee’s place, significantly with respect to the long-standing SEC vs. Ripple case.

That’s not all although, because it additionally raises hopes for a much-anticipated approval of an XRP Trade-Traded Fund (ETF).

Key developments shaping XRP information in Q2

The XRP market stays buoyed by rising optimism surrounding regulatory readability and the potential for an XRP-focused ETF.

On 9 April, the U.S. Senate confirmed President Trump’s nomination of Paul Atkins as SEC Chair. Atkins is extensively perceived as crypto-friendly, growing the probability of regulatory de-escalation.

Including gasoline to the narrative, the SEC and Ripple collectively filed to droop the continuing enchantment, pushing Ripple’s ‘reply’ deadline past 16 April.

In consequence, market analysts consider the SEC could also be delaying motion till Atkins is formally sworn in, doubtlessly paving the best way for a 3–1 vote in favor of withdrawing the enchantment.

The market response was fast. Following the XRP information, the altcoin surged a staggering 14.28% in a single day, pushing XRP above $2 after three consecutive days of downward stress.

Supply: TradingView (XRP/USDT)

Regardless of buying and selling greater than 30% under its post-election peak of $3.30, these latest developments might considerably reshape the altcoin’s valuation outlook for Q2.

Market sentiment and ETF buzz

Following the XRP news-driven catalyst, Open Curiosity (OI) surged from $2.87 billion to $3.26 billion, signaling a pointy hike in leveraged participation.

On Binance, long positions made up practically 70% of the XRP/USDT perpetual market, highlighting a robust directional bias in the direction of additional upside.

In the meantime, short-term holders (STHs < 155 days) exited the extended capitulation phase they entered into following the drop to $1.60. This cohort appeared to have strategically offloaded positions to lock in earnings from XRP’s January rally, which peaked close to $3.30.

And, the excellent news? The variety of addresses holding greater than 10,000 XRP surged to an all-time excessive, nearing the historic 300k-mark. 

Supply: Glassnode

This cohort now represents roughly 4.28% of all XRP addresses – Indicating a rising focus of high-stake holders and doable institutional confidence constructing beneath the floor.

That is exactly the place Trade-Traded Funds (ETFs) enter the dialog.

XRP-related ETF speculation is heating up, particularly within the wake of the pro-crypto shift on the SEC. Mixed with XRP’s rising institutional footprint, the case for an ETF has by no means seemed extra credible.

Therefore, short-term volatility, pushed by weak-hand shakeouts, is to be anticipated.

Nonetheless, these underlying metrics shall be key. Firstly, for XRP to capitalize on the narrative shift and subsequently, to gasoline a bullish Q2 trajectory.