The cryptocurrency landscape is abuzz with discussions about XRP and its future potential. Much of the excitement stems from rumors suggesting the possible launch of a U.S. XRP Exchange-Traded Fund (ETF). Crypto expert Ben Armstrong, also known as BitBoy, has highlighted a significant 300% growth in the GrayScale XRP Trust since May. This substantial increase signals robust market confidence in XRP, sparking hopes for an ETF that could simplify access for investors.
Ripple’s RLUSD Approval Boosts Confidence
In recent developments, Ripple’s stablecoin, RLUSD, has garnered approval from the New York Department of Financial Services (NYDFS). This approval is seen as a major confidence booster for Ripple’s ecosystem, hinting at promising prospects for its continued influence in the cryptocurrency market. Investors view this milestone as a positive stride, enhancing optimism about Ripple’s potential and ongoing expansion.
Anticipation of Pro-Crypto Policies
The election of Donald Trump, who has demonstrated a supportive stance towards cryptocurrencies, has fueled anticipation for favorable regulatory measures in the United States. Many believe this political shift could lead to a resolution in Ripple’s ongoing legal battle with the SEC, paving the way for broader adoption and innovation in the crypto space. With major financial entities like WisdomTree, Bitwise, and 21Shares filing applications for XRP ETFs, the institutional interest is palpable. These filings could be instrumental in propelling XRP into the mainstream financial arena.
XRP’s Price Outlook
XRP, currently the fourth-largest cryptocurrency with a market capitalization surpassing $130 billion, has experienced notable price movements. Over the past month, it has rallied impressively by 250%, although it recently dipped by 5% in the last 24 hours. Despite this fluctuation, analysts, including Armstrong, remain optimistic, forecasting a potential price increase to $4.5 by early 2025.
From a technical perspective, XRP is showing promising signs. A bullish flag pattern is emerging, although the TD Sequential indicator suggests a short-term correction could precede further gains. A critical resistance level to monitor is $2.46; surpassing this could open the path to $3 and eventually $4. With an RSI of 62, XRP is not considered overbought, indicating room for upward momentum. The broader market enthusiasm, bolstered by Bitcoin surpassing $100K and Ethereum’s stability, supports XRP’s potential rise. However, if it fails to maintain momentum, prices could fall below $2.
Crypto Reaction is Mixed
Despite the market’s positive reception of XRP’s 250% rally, there remains some skepticism regarding the SEC’s timeline for approving an XRP ETF, especially given the success of Bitcoin and ETH ETFs. In a recent social media post, VivekVentures.eth emphasized Ethereum’s pivotal role in shaping future crypto regulations. He argues that for other Layer 1 assets like ADA or XRP to reach significant milestones, such as ETF launches or becoming strategic reserve assets, Ethereum must pave the way.
This sentiment aligns with comments from Jay Jacobs of BlackRock, who noted that while Bitcoin and Ethereum are attracting significant attention, with most clients focusing on these assets, only a small fraction currently owns Ethereum-based ETFs. This focus underscores the primary role of Bitcoin and Ethereum in the current crypto landscape.
