XRP reached $2.48, the highest price this cryptocurrency has achieved since 2018. This altcoin has increased by approximately 399 percent in a one-month timeframe due to optimistic sentiment regarding regulations, politics, and institutions.
Political and Regulatory Changes Reinforce Confidence
A series of favorable political and regulatory changes have contributed to the rapid rise of XRP. With its critical stance on digital assets, the cryptocurrency industry welcomed Gary Gensler's resignation as SEC chairman. Market participants anticipate that a more crypto-friendly SEC leadership will ease regulatory pressure, potentially resolving Ripple's long-standing legal battles.
Furthermore, new hope for bitcoin investors emerged after the election victory of President-elect Donald Trump, whose administration is likely to support bitcoin. The basis for this enthusiasm is the rise of altcoins and retail trading, which also boosts XRP.
Institutional Demand Is Rising
Regarding institutional investment in XRP, CoinShares reported $95 million and $11.75 million in weekly investments, an increase of 621% from the previous week. This means that XRP accounted for 35% of total inflows into digital assets during the same period, indicating increasing Ripple usage in the institutional market.
Other ETF applications for cryptocurrency XRP include WisdomTree, 21Shares, and Canary Capital. Some industry experts believe that ETF approval could trigger a massive price increase as institutional investors will be able to gain direct access to Ripple's XRP.
This also increases confidence that proper assets will be created within the ETF framework as New York Mellon Bank acts as the trustee, which will help attract more large financial institutions to participate in Ripple's ecosystem.
Altcoin Momentum Supports XRP's Growth
They have dubbed it 'altcoin season', in which XRP has taken market changes to a new height. Bitcoin's market share has dropped from 60 to 53% as investors poured money into altcoins, with XRP being one of the biggest beneficiaries.
This is especially true after some platforms, such as Robinhood, relisted XRP, resulting in high trading volume. The availability of XRP for people on the street to buy back has brought market activity, which has increased price volatility.
The current performance of XRP and the overall market conditions suggest similar developments in the future. Some observers believe that XRP is waiting for ETF approval and regulatory endorsement, and they argue that once these occur, XRP could easily surge to new levels.
With XRP still in the spotlight, institutional buying, the readiness of the political landscape, and new changes in regulatory policies are expected to determine the future trajectory of the token in the coming months.
However, whether the token will reach the hyped $10 level and when will depend on how all these factors play out. Currently, the XRP axis is favorable for maintaining an upward trend and consolidating its position in the altcoin market.
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