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XRP,
Ripple’s cryptocurrency focused on global payment solutions, posted an extraordinary price rally, pushing its price to levels last seen in the 2021 crypto
boom. At the
time of writing, the token, now ranked 5th with a market capitalization of $96
billion, is trading for $1.7. The figure represents a 15% gain in the past day
and week.
Interestingly,
XRP has soared 225% in the past month alone, according to the data from
CoinMarketCap, and now the bulls are targeting the psychological price of $2.
The
token’s bullish sentiment is reportedly driven by a combination of legal
optimism, ETF speculation, and heightened trading activity. As the token hovers around $1.70, traders and investors are speculating about the possibility of
the price reaching $2 or even beyond.
Optimism
for Ripple
Ripple’s
ongoing legal battle with the US Securities and Exchange Commission (SEC) has
been a defining narrative for XRP. Recent developments suggest the saga may
finally be nearing resolution.
On the
fundamental aspects, the announcement that SEC Chair Gary Gensler will leave office on January 20, the same day Donald Trump will be inaugurated, has fueled hopes for a more crypto-friendly regulatory environment.
In 2020,
the SEC charged Ripple Labs, the entity behind XRP and two of its executives,
for allegedly raising $1.3 billion through the sale of unregistered securities
offerings. The crypto is now hoping that the SEC will dismiss the lawsuit
against Ripple under a new administration.
If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn’t protected investors and instead has damaged the credibility and reputation of the SEC.Somehow, they still haven’t gotten the message: they lost on everything that… https://t.co/1hW7xVSL9b
— Brad Garlinghouse (@bgarlinghouse) October 2, 2024
Secondly,
XRP has benefited from asset management firms, which are eying the possibility of listing
its exchange-traded fund (ETF). Bitwise Asset Management recently filed for a
multi-crypto ETF, allocating 1.5% of its holdings to XRP, Cryptopotato
reported. Historically, ETF approvals have triggered significant price
increases for underlying assets.
XRP’s
meteoric rise isn’t driven solely by legal and regulatory news. South Korean
exchange exchanges have emerged as major hubs for the token’s trading,
accounting for a significant portion of the billions of its trading volume,
Bitcoin.comNews reported.
Open
Interest in XRP
Open interest in XRP futures contracts has also hit record highs, signaling strong
confidence in further price movement, data from Coinalyze shows. The percentage
change for perpetual and futures contracts has jumped 31% and 21%,
respectively.
Although
the anticipated launch of an XRP ETF depends on regulatory approval, the
anticipation of new developments within Ripple’s ecosystem has provided an
additional boost to the XRP price.
WisdomTree,
another prominent New York-based asset management firm, filed for an XRP exchange-traded fund (ETF) in Delaware this month. Canary Capital and 21Shares have also joined the race.
While
XRP’s performance has been impressive, analysts have warned of potential
corrections. Massive transfers between unknown wallets, including a recent 35
million XRP transaction, have raised concerns about possible market
manipulation.
With the
potential for an ETF launch, a favorable outcome in the Ripple-SEC case, and
growing investor confidence, XRP could achieve the $2 price milestone.
This article was written by Jared Kirui at www.financemagnates.com.
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