The past few weeks have seen no shortage of activity around XRP, between price swings, major company transfers, positive legal developments, and rumors of upcoming ETF filings. While the price of the cryptocurrency has stumbled lately, dropping 10% over the last week, some major tailwinds could help reverse its fortunes.
Keypoints
- Speculation mounting about potential XRP ETF filing after SEC approval of Bitcoin ETF
- Positive legal developments for Ripple/XRP with judge ruling XRP not a security, boosting confidence
- Potential XRP ETF filing speculated as early as April 2024 by some in the community
- XRP price struggling lately with 10% drop in last week, but still has potential if ETF approved
- Ripple transfers 100 million XRP to unknown wallet, sparking 5% price surge but only briefly
Most notably, optimism around XRP was boosted in July 2023 when a judge ruled that Ripple’s sales of the token to retail investors do not constitute securities transactions. This removed a major legal overhang that had depressed prices. It also gives confidence to several major financial firms who are now expected to file for XRP exchange-traded funds (ETFs) with US regulators.
The speculation around potential ETFs comes right on the heels of the SEC looking to ok the first Bitcoin spot ETF.
Some figures within the XRP investment community believe that XRP ETF filings could follow as earlier as April 2024. The names floated range from mainstream giants like BlackRock and Fidelity to crypto-native firms like Grayscale, which just added XRP back to one of its fund offerings.
The thought is that SEC approval of XRP ETFs could significantly broaden investor access and demand for the token, which could help propel it above the key $1.00 price threshold. Some technical indicators, like MACD and RSI, currently show bearish momentum however, so a reversal would need to materialize relatively soon.
Adding to the recent drama was a WhaleAlert notification that Ripple completed a transfer of 100 million XRP tokens, worth $56 million, to an unknown wallet address. The recipient appears unaffiliated with Ripple, spurring speculation about their identity and relationship to the company.
???? ???? ???? 100,000,000 #XRP (56,348,748 USD) transferred from #Ripple to unknown wallethttps://t.co/GcOtwCsMYR
— Whale Alert (@whale_alert) January 7, 2024
Shortly after the transfer, XRP prices shot up nearly 5% before returning back down—a sign of the volatility facing the cryptocurrency lately. While the motives behind Ripple’s large transfer remain a mystery, it shows the company’s substantial control over the XRP ecosystem.
The coming weeks and months look pivotal for the XRP token between the lingering potential of an ETF listing, continued legal clarifications, and Ripple making head-turning transfers worth tens of millions. Although prices face pressure now, the confluence of factors suggest brighter days could still be ahead for the asset as it looks to regain momentum from 2023’s highs.
