As the Bitcoin (BTC) price approached $43,700 during the writing of this article, the crypto community is abuzz with the possibility of an imminent ETF approval. This sentiment is fueled by recent hints from the CEO of Galaxy and a report by Reuters suggesting that the announcement could come as early as Tuesday or Wednesday, creating a justified excitement.
The question on many investors’ minds is how the approval of a Spot Bitcoin ETF could affect the prices of other cryptocurrencies such as XRP, SOL, and ADA (Cardano). These coins, along with others, are expected to benefit from the FOMO (fear of missing out) that typically accompanies such significant developments in the crypto space.
For XRP, a strong support level at $0.60 has been maintained, and if the price can break through the trend line, it could potentially rise to $0.74. However, a rapid BTC surge could suppress XRP’s price, possibly causing it to fall to $0.56 or even $0.46 in a bearish scenario.
SOL (Solana) has managed to hold its support at $96.68, even amidst selling pressure. Breaking through the $107 resistance level, SOL could signal a significant uptrend if it starts closing above $110. Investors have already seen substantial gains in a short period, and if the rally continues, targets of $156 and $200 are within sight. On the downside, a critical support to watch is the 20-day EMA, and a break below $95 could lead to panic selling and a sharp decline to $74.
Cardano (ADA), on the other hand, continues to trade within a symmetrical triangle formation, indicating indecision between bulls and bears. This pattern is generally considered a continuation formation, and predicting the direction is challenging before a breakout occurs. If BTC’s price were to increase, leading to an upward breakout, ADA could move towards $0.68 and $0.8. Conversely, if it takes a downward turn, ADA could retreat to as low as $0.51.
Overall, the potential approval of a Bitcoin ETF is expected to have a ripple effect across the cryptocurrency market, with altcoins like XRP, SOL, and ADA poised to react accordingly. While optimism is high, investors are also preparing for various outcomes, understanding that the volatile nature of the market can bring both rapid gains and sharp declines.