Category: Crypto News, News
Why It Could Hit $2 Soon — TradingView News
XRP,Ripple’s cryptocurrency focused on global payment solutions, posted an extraordinary price rally, pushing its price to levels last seen in the 2021 cryptoboom. At thetime of writing, the token, now ranked 5th with a market capitalization of $96billion, is trading for $1.7. The figure represents a 15% gain in the past dayand week.
Interestingly,XRP has soared 225% in the past month alone, according to the data fromCoinMarketCap, and now the bulls are targeting the psychological price of $2.
Thetoken’s bullish sentiment is reportedly driven by a combination of legaloptimism, ETF speculation, and heightened trading activity. As the token hovers around $1.70, traders and investors are speculating about the possibility ofthe price reaching $2 or even beyond.
XRP Weekly Price Chart, Source: CoinMarketCap
Optimismfor Ripple
Ripple’songoing legal battle with the U.S. Securities and Exchange Commission (SEC) hasbeen a defining narrative for XRP. Recent developments suggest the saga mayfinally be nearing resolution.
On thefundamental 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 securitiesofferings. The crypto is now hoping that the SEC will dismiss the lawsuitagainst 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
Secondly,XRP has benefited from asset management firms, which are eying the possibility of listingits exchange-traded fund (ETF). Bitwise Asset Management recently filed for amulti-crypto ETF, allocating 1.5% of its holdings to XRP, Cryptopotatoreported. Historically, ETF approvals have triggered significant priceincreases for underlying assets.
XRP’smeteoric rise isn’t driven solely by legal and regulatory news. South Koreanexchange 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.
OpenInterest in XRP
Openinterest in XRP futures contracts has also hit record highs, signaling strongconfidence in further price movement, data from Coinalyze shows. The percentagechange for perpetual and futures contracts has jumped 31% and 21%,respectively.
Source: Coinalyze
Althoughthe anticipated launch of an XRP ETF depends on regulatory approval, theanticipation of new developments within Ripple’s ecosystem has provided anadditional boost to the XRP price.
WisdomTree,another prominent New York-based asset management firm, filed for an XRPexchange-traded fund (ETF) in Delaware this month. Canary Capital and 21Shares have also joined the race.
WhileXRP’s performance has been impressive, analysts have warned of potentialcorrections. Massive transfers between unknown wallets, including a recent 35million XRP transaction, have raised concerns about possible marketmanipulation.
With thepotential for an ETF launch, a favorable outcome in the Ripple-SEC case, andgrowing investor confidence, XRP could achieve the $2 price milestone.
Written by : Editorial team of BIPNs
Main team of content of bipns.com. Any type of content should be approved by us.
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