XRP has established strong support at $2.80, fueling an October rally that could be enhanced by ETF approvals and new institutional investments.

Key Highlights:

• XRP is showing support at $2.80, with expectations of a breakout leading to a 23% rally to $3.66.
• Approval from the US Securities and Exchange Commission (SEC) for spot XRP ETFs may add momentum this month.

XRP’s price increased 5% in the last 24 hours, now trading just below $3, recovering from a recent low of $2.69. This position is supported by various technical, fundamental, and on-chain factors.

On-chain Data Validates XRP’s Breakout Potential

On Tuesday, XRP reached its record quarterly close, moving above the crucial $2.75-$2.80 support area. This data, gathered from Cointelegraph Markets Pro and TradingView, highlights significant activity with approximately 4.3 billion XRP purchased at this threshold.

“XRP is currently trending in a descending triangle pattern as buyers sustain the $2.80 support level,” said analysts from Alpha Crypto Signal. “This narrowing trend is gearing up for a significant move.”

Next crucial resistance is located at the 0.618 Fibonacci retracement level, around $3, aligned with the triangle’s descending trendline.

A breakout beyond this line combined with an increase in trading volume could propel XRP towards $3.40–$3.66.

XRP Cost Basis Distribution Heatmap XRP cost basis distribution heatmap. Source: Glassnode

Cointelegraph has previously reported that a decisive breakout from a symmetrical triangle could ignite a rally towards $4.20 in October, supported by heavy whale buying.

SEC’s Approval on ETF Likely to Elevate XRP Price

The ETF spotlight this October may increase XRP’s momentum, especially with the SEC deadlines approaching mid-month. The agency is anticipated to rule on six spot XRP ETF applications, including one from Grayscale, by October 18. Additional decisions are due between October 19 and 25.

⚡️INSIGHT: SEC nearing decisions on multiple XRP ETF applications in October.

Following the SEC’s recent endorsement of simplified listing norms for spot crypto ETFs, there is a notable regulatory willingness post the resolution of Ripple’s lawsuit.

Further approvals could unlock vast amounts of institutional capital, akin to the $38 million in first-day volume seen with REX/Osprey’s XRPR.

Even partial approvals would likely improve market sentiment, liquidity, and adoption, driving a self-sustaining rally through the high-stakes opportunities of October.