- Ripple’s XRP surged over 7% after WisdomTree filed for an XRP-focused ETF in Delaware, signaling growing institutional interest and optimism for favorable U.S. crypto regulations.
- Bolstered by high open interest and recent ecosystem developments, XRP is poised to challenge its April 2021 resistance of $1.96, barring a drop below $1.35.
Ripple’s XRP is gaining traction, surging over 7% in a single day, fueled by positive developments in the cryptocurrency landscape. The recent registration of an XRP Exchange-Traded Fund (ETF) by WisdomTree, a global asset management giant, has injected optimism into the market, pushing XRP closer to its April 2021 high of $1.96.
WisdomTree Leads the ETF Charge
On Monday, WisdomTree filed for an XRP ETF in Delaware, joining the likes of Bitwise, 21Shares, Canary Capital, and Grayscale, all of whom are aiming to bring XRP-focused investment products to the market. With $113 billion in assets under management, WisdomTree’s entry underscores growing institutional interest in XRP.
This development follows the company’s successful launch of the WisdomTree Physical XRP ETP (XRPW) in Europe, offering direct exposure to XRP’s spot price. Experts anticipate further filings with the U.S. Securities and Exchange Commission (SEC), potentially reshaping the regulatory environment for crypto-focused ETFs.
Regulatory Shifts Favoring XRP
The timing of this ETF push coincides with major shifts in U.S. regulatory leadership. SEC Chair Gary Gensler’s planned departure in January 2024 and Donald Trump’s likely return to the White House have fueled expectations of more crypto-friendly policies. Investors are optimistic about Trump’s pro-crypto stance, which could pave the way for clearer, more favorable regulations.
Ripple is also expanding its horizons, launching a tokenized money market fund in partnership with UK-based Archax and asset manager abrdn plc. This innovation, tied to abrdn’s $3.8 billion U.S. dollar Liquidity Fund, marks the first such fund on the XRP Ledger, showcasing Ripple’s growing ecosystem.
The Path to $1.96
XRP’s bullish momentum remains intact, buoyed by open interest reaching an all-time high of $2.68 billion before a slight correction to $2.25 billion. The Relative Strength Index (RSI) indicates that prices are entering the overbought territory, suggesting caution for short-term traders.
However, if XRP can maintain its current upward trajectory and close above $1.35 on the daily candlestick chart, it is well-positioned to test the critical resistance at $1.96. Conversely, a dip below $1.35 could pull prices back to the $0.93 support level.
Key Takeaways
- WisdomTree’s XRP ETF registration adds to institutional enthusiasm for XRP.
- Regulatory changes in the U.S. could foster a more crypto-friendly environment.
- XRP’s ecosystem growth, coupled with strong technical indicators, points to a potential rally toward $1.96.
With XRP riding the wave of optimism and innovation, investors are watching closely as it approaches a key milestone, setting the stage for a transformative period in the cryptocurrency market.