XRP experienced a price increase of over 3% on Monday, with the digital asset trading at approximately 2.33 USD. The positive movement seems to result from a mix of factors, including important changes in the market regulatory center concerning XRP-linked investment products, sentiment from technical market analysis, and a recovery throughout the cryptocurrency market.
SEC Allows Futures ETFs While Spot Approval Remains Pending
One of the key components of this recent price action for XRP was the expected release of multiple XRP futures ETFs within the United States. The SEC approved the issuance of XRP futures ETFs by ProShares Trust, allowing ProShares to issue a sum larger than previously expected. The effective date is set for this Wednesday. The SEC also approved the ProShares UltraShort XRP ETF, ProShares Ultra XRP ETF, and ProShares Short XRP ETF. These new products are designed to provide the funds executed through proxies by investors lending payments to XRP, inverse XRP net investment trusts, and direct leverage sought through inverse exposure trading designed within speculative order books.
The approval of these futures-based products is a huge advancement, yet a vast number of traders and investors still hope for the spot XRP ETFs to receive regulatory approval for trading on US exchanges. Market watchers say this period of waiting may take longer than originally thought. On the other hand, the regional market for XRP investment products is changing; for instance, Brazil last Friday became the first country to launch an XRP spot ETF on its main stock exchange, B3, as disclosed in an official press statement. The statement illustrates the differing speeds and methods of countries’ jurisdictions in navigating the regulatory framework for cryptocurrency investment funds.
Ripple Responds to IPO Speculation, Reiterates They Are Financially Healthy
At the same time these ETF changes were made, the payments technology firm closely linked to XRP, Ripple, sought to dispel longstanding rumors of a possible Initial Public Offering (IPO) in 2025. During a CNBC interview on Thursday, Ripple President Monica Long authenticated these claims. Long noted that the payment remittance firm possesses “billions of dollars in cash,” making it clear how well they are doing financially. Furthermore, she decisively stripped the narrative that the company was planning an IPO, stating that there are no such intentions of executing a public listing at the moment.
In the interview aired on “Beyond the Valley” on CNBC with Arjun Kharpal, Long explained further that Ripple is concentrating on strategic plans like its forthcoming stablecoin rollout and enhancing the tokenization of real-world assets. She emphasized that Ripple has more than enough internal capital to fulfill these visions up through 2025, as they will not have to rely on an external IPO to meet goals. These remarks are in line with what Ripple CEO Brad Garlinghouse has said about IPOs, stating they will most likely be pursued after resolving the company’s protracted legal tussle with the SEC.
Indicators Suggest the Probability of Profits
Along with the favorable price movement, a closer XRP/USDT daily chart reveals that further gains are possible. XRP has recently reached another milestone, this time hitting $2.33. Some of the indicators are confirming the rally. An instrument for estimating price movement, the Relative Strength Index (RSI), shows 62 on the daily chart. This figure means that the asset’s price is above 50 and is currently rising, suggesting that the asset is experiencing growing support.
Also, the MACD indicator is the buying power trend for the XRP token, which shows positive XRP price action momentum as its histogram bars are consecutively green above the neutral line. Considering the Fibonacci retracement levels set from the previous drop of XRP ($3.40 peak to $1.62 low), the analysis indicates XRP has the potential to rally another 8% to hit the key resistance at $2.51. T
his price mark serves as the 50% Fibonacci retracement level. Further, breaking this level sustainably, confirmed with a close of a daily candle, would bolster advances toward $2.72, corresponding to 61.8% Fibonacci retracement and the lower bound of an important FVG on the daily chart. On the other hand, if market conditions turn pessimistic, perhaps because of a broader market pullback or a massive sell-off in Bitcoin, it would push XRP to the 23.6% Fibonacci at $2.04, identified as key support for XRP.
With the week advancing, the market will keenly focus on the ProShares XRP futures ETFs going live and whether they are able to sustain the bullish advance of XRP with the current technical buying pressure.
