XRP Leads the Crypto Market Recovery: Could a Major Rally Be on the Horizon?
The price of XRP is currently spearheading gains among top cryptocurrencies, as the market begins to rebound from its recent slump. Traders are now speculating that this could mark the beginning of a significant rally for XRP, which had struggled to gain clear upward momentum following the conclusion of the Ripple vs. SEC lawsuit earlier this month.
Is XRP Positioned for a Major Bull Run?
Conclusion of the SEC v. Ripple Labs Case
In a recent ruling, Judge Analisa Torres ordered Ripple Labs to pay $125 million in penalties to the U.S. Securities and Exchange Commission (SEC). This amount is a far cry from the $2 billion initially sought by the government agency. Despite the imposed injunction, Ripple’s On-Demand Liquidity (ODL) business remains largely unaffected, as the company continues to engage in similar transactions outside the United States.
The ruling is widely regarded as a victory for Ripple Labs and the broader crypto community. However, the subsequent market downturn erased much of the initial optimism, with XRP’s price dropping below $0.50. Since then, the price has rebounded by 25%, with investors maintaining a bullish outlook. The recent market recovery could potentially trigger the long-awaited rally that many had expected after Ripple Labs’ legal win.
XRP ETF Speculation and the RLUSD Stablecoin
Following the court ruling, Ripple Labs unveiled plans for the RLUSD stablecoin, announcing that it has begun testing Ripple USD (RLUSD) on both the XRP Ledger and Ethereum networks.
The crypto community is highly optimistic about the potential launch of an XRP ETF, pending further legal clarity. Ripple Labs’ CEO, Brad Garlinghouse, has noted that the introduction of an XRP index by CME and CF Benchmarks has increased the likelihood of an XRP ETF becoming a reality.
These developments are expected to significantly boost XRP’s price. Although financial giants like BlackRock have denied any immediate plans to issue an XRP ETF, companies are already beginning to utilize XRP. Notably, Wells Fargo has approved the use of XRP for loan payments and credit card debt settlements.
Additionally, Bitnomial Exchange, a designated contract market, has formally informed the CFTC of its intention to introduce XRP/USD futures contracts.
XRP Price Chart Signals Bullish Momentum with Golden Cross Formation
The XRP price chart has recently formed a bullish pattern known as the “golden cross,” which occurs when a short-term moving average crosses above a long-term moving average.
On the daily chart, the 50-day moving average has crossed over the 200-day moving average, confirming the golden cross formation. This has led to a 7% increase in XRP’s price over the last 24 hours, further fueling traders’ bullish sentiment.
Rising Demand for XRP in the Derivatives Market
The derivatives market is also seeing a surge in demand for XRP. Data from Deribit exchange shows a significant increase in open interest for XRPUSDC linear options, with traders targeting a price as high as $1.
Meanwhile, total open interest in XRP futures is once again surpassing $700 million. Coinglass data reveals an 11% increase in XRP open interest across crypto exchanges in the past 24 hours.
Over the last day, XRP’s price has risen by more than 7%, currently trading at $0.609. The 24-hour low and high are $0.576 and $0.614, respectively. Additionally, trading volume has surged by 63% in the last 24 hours, reflecting growing interest from traders. Analysts are now predicting that XRP could rally to $1 in the near future.
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