Will Ripple Price Rocket 60% After XRP ETF Launch?

by

As a seasoned researcher with years of experience in the dynamic world of cryptocurrencies, I’ve seen my fair share of market swings and trends. The current rally of Ripple‘s native cryptocurrency, XRP, is particularly intriguing. Despite the recent market pullback, XRP has shown remarkable resilience, which is quite unusual for altcoins.

During the recent downturn in the cryptocurrency market, Ripple’s own digital currency, XRP, has demonstrated remarkable resilience, even though it had already gained an impressive 400% due to growing anticipation about the potential launch of an XRP Exchange Traded Fund (ETF). At present, the value of Ripple is moving within a bull-flag formation, hinting at a possible surge towards the $3.5 price point.

Although there’s a temporary downturn, it’s worth noting that XRP has climbed an impressive 44% over the past month. Since Donald Trump’s election victory on November 5, Ripple’s native cryptocurrency has experienced steady growth. Some analysts anticipate that if the ongoing Ripple vs SEC lawsuit resolves favorably, XRP could surge to $10 and beyond.

Key Factors Influencing Ripple Price Rally Ahead

Ripple’s XRP Shows Strength on Technical Chart

Over the past week, after Bitcoin reached an unprecedented high of $108K, I witnessed a steep downturn in the crypto market that also affected Bitcoin significantly, alongside the broader altcoin market. Amidst this broader market correction, Ripple managed to recover from its lowest point at $2 and has been maintaining the critical support level of $2.18 as we speak.

According to its technical chart, XRP appears to be forming a ‘bull flag’ pattern, which suggests it might surge up to approximately $3.5. This potential increase represents an additional 60% if we consider the current prices. However, for this rally to occur, XRP must first manage to break past the resistance level of $2.42.

Cryptocurrency expert Ali Martinez offers his perspective on XRP, predicting that if Ripple’s price remains steady above $2.20, it might gather strength before making another effort to break through the $2.70 resistance point. Yet, he advises that a drop to $1.96 could occur swiftly if the $2.20 support level is breached.

Whale Activity Pushes Ripple Price Higher

Last week, as the crypto market experienced a significant downturn, large XRP investors (XRP whales) seized an opportunity to increase their holdings during Ripple’s price decline. After the first major correction on December 17, these whales acquired approximately 80 million coins, which contributed to a swift recovery from the support levels of $2.0 for XRP.

Consequently, an enormous movement of approximately $222 million in XRP has fueled more talk about a significant price increase. This has led certain financial experts to predict optimistic price goals as high as $13 during the next market surge.

RLUSD Stablecoin Launch to Benefit XRP

Ripple Labs CTO David Schwartz recently commented on the company’s new RLUSD stablecoin, which went live last week. Schwartz highlighted that Ripple USD provides valuable use cases for both users and developers. He emphasized that the stablecoin generates both direct and indirect benefits for the XRPL ecosystem, with one key advantage being its ability to drive positive trading volume, using XRP as a bridge asset.

XRP ETF Demand on the Rise

As President-elect Donald Trump prepares to assume office in January next month, investors are hopeful that the ongoing SEC lawsuit against Ripple will be resolved soon. Last week, there was widespread speculation about the submission of a BlackRock XRP ETF. Yet, Jay Jacobs, head of ETF at BlackRock, quickly dismissed these rumors.

Even with current circumstances, supporters of the crypto market remain hopeful that an XRP Exchange-Traded Fund (ETF) will be established by the year 2025. This potential move might spark increased institutional investment in this asset class, which could in turn boost the value of Ripple.

21Shares, WisdomTree, and other leading asset managers have submitted proposals to the U.S. Securities and Exchange Commission (SEC) to introduce an exchange-traded fund (ETF) that focuses on Ripple’s native cryptocurrency XRP. The proposed Bitwise 10 Crypto Index ETF, meanwhile, includes XRP, with a 1.56% share of the total index.

Read More

2024-12-23 14:28