Ripple’s XRP has surged by 30%, reaching a market value of $137.4 billion, making it the fourth most valuable cryptocurrency. This growth has allowed it to surpass Tether (USDT) at $134.3 billion and Solana at $112.2 billion.
What’s Fueling XRP’s Massive Rally?
Driven by favourable market developments, regulatory updates, and growing optimism, XRP’s price has risen to around $2.46, reflecting an impressive 77% gain in just one week. Moreover, its RLUSD stablecoin is close to gaining approval from the New York Department of Financial Services (NYDFS). This would allow it to access New York’s financial system and compete with stablecoins like USDT and USDC.
Peter Chung, head of research at Presto Research, believes XRP’s recent price surge is driven by growing confidence in Ripple’s long-term vision, bolstered by the potential RLUSD approval.
Additionally, with SEC Chair Gary Gensler set to step down in January, many anticipate a settlement in Ripple’s ongoing legal battle, which has limited XRP’s growth since 2020. Chung sees Gensler’s departure as a positive for Ripple. “Gensler stepping down is a plus,” he said. “A new SEC chair might settle or drop several lawsuits, including Ripple’s. This could give Ripple the breathing room it needs to expand,” he added.
Previously, renowned analyst Egrag made a bold prediction for XRP‘s price, sparking excitement among investors. He believes that if this altcoin stays above $1.10, it could reach $13 soon. After years under $1, its recent breakout has sparked optimism in the crypto market.
Is the Surge Driven by Speculation?
XRP’s recent rally has excited the crypto community but also raised concerns. The surge, largely driven by speculative trading, pro-crypto political developments, and legal optimism for the altcoin, shows signs of potential vulnerability to a correction. Technical indicators add to the caution. The Relative Strength Index (RSI) is above 70, suggesting XRP may be overbought.
The MACD line indicates weakening momentum, which could signal a potential pullback. Additionally, declining trading volumes amid rising prices raise doubts about the rally’s sustainability. While Ripple’s institutional partnerships continue to solidify XRP’s position in institutional finance, market analysts caution that the recent rally’s sustainability is questionable. Declining trading volumes amid rising prices raise concerns about potential volatility and sharp corrections in the near term.
Can its Utility and ETF Plans Stabilize This Altcoin’s Price?
XRP’s true potential lies in its utility. Ripple plans to integrate RLUSD into its RippleNet platform. This will reduce costs and improve cross-border payment efficiency. It strengthens this altcoin’s core values. The possibility of XRP spot ETFs adds to the excitement. 21Shares and Bitwise have filed applications. Approval could attract institutional investors and stabilize XRP’s price. Ripple’s focus on partnerships and ecosystem growth builds a strong foundation. This approach helps shield XRP from speculation and market swings.
Conclusion:
XRP’s surge to the third-largest cryptocurrency reflects growing optimism, driven by the potential approval of Ripple’s RLUSD stablecoin and a possible SEC settlement. However, concerns about overbought conditions and weakening momentum suggest the rally may face corrections. This altcoin’s future depends on its utility, Ripple’s strategic partnerships, and potential institutional interest, particularly if XRP spot ETFs gain approval. While the outlook is positive, its ability to maintain momentum will hinge on these key developments.
XRP’s long-term prospects will be largely determined by its practical usage in real-world applications, Ripples effectiveness in forming and expanding strategic partnerships, and its ability to attract institutional interest. The approval of XRP spot ETFs, a major upcoming catalyst in the crypto space, would further solidify its legitimacy and likely lead to several such solutions in the future.
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