As the cryptocurrency landscape continues to evolve, XRP is capturing significant attention, fueled by speculation surrounding a potential U.S. XRP ETF launch. Crypto analyst Ben Armstrong, widely known as BitBoy, has highlighted a remarkable 300% increase in the GrayScale XRP Trust since May. This surge underscores growing market confidence in XRP, and has sparked speculation that an XRP ETF could soon be realized, making it more accessible for investors.
Ripple’s RLUSD Approval Boosts Confidence
In recent developments, Ripple’s stablecoin, RLUSD, received the green light from the New York Department of Financial Services (NYDFS). This approval has infused the market with optimism regarding Ripple’s ecosystem and its future potential. Investors perceive this move as a positive indication, especially as Ripple continues to solidify its presence in the cryptocurrency sector.
Anticipation of Pro-Crypto Policies
The election of Donald Trump, a known proponent of cryptocurrencies, has raised hopes for more favorable crypto regulations in the United States. This development is seen by many as a potential catalyst for resolving Ripple’s ongoing legal challenges with the SEC, thereby opening doors for broader adoption and innovation in the crypto space. Notably, major financial institutions such as WisdomTree, Bitwise, and 21Shares have submitted applications for XRP ETFs, signaling robust institutional interest. These applications could potentially lay the groundwork for the anticipated ETF launch, further integrating XRP into mainstream finance.
XRP’s Price Outlook
Currently, XRP ranks as the fourth-largest cryptocurrency, boasting a market cap exceeding $130 billion. Its recent price trajectory has been impressive, with a 250% rally recorded over the past month. Despite a slight 5% dip in the last 24 hours, analysts like Armstrong maintain a bullish outlook, forecasting a potential price target of $4.5 by early 2025. Technically, XRP is demonstrating a promising pattern, with a bullish flag formation in progress. However, the TD Sequential indicator suggests a possible short-term correction. Key resistance levels to monitor include $2.46, and a breach could set the stage for further gains to $3 and eventually $4. XRP’s Relative Strength Index (RSI) at 62 indicates it is not overbought, allowing room for upward momentum. Broader market enthusiasm, buoyed by Bitcoin surpassing $100K and Ethereum’s stability, supports XRP’s potential rise, although failure to maintain momentum could see prices drop below $2.
Crypto Reaction is Mixed
Despite market enthusiasm over XRP’s 250% rally, there is a degree of skepticism regarding the SEC’s timeline for approving an XRP ETF, particularly in light of the success of Bitcoin and Ethereum ETFs. A recent comment on social media by VivekVentures.eth highlighted 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’s success is crucial. This view is echoed by Jay Jacobs from BlackRock, who noted that the primary focus remains on Bitcoin and Ethereum, as they are currently the main attractions, with only a minority of clients engaging with Ethereum-based ETFs.
