The U.S. Securities and Exchange Commission (SEC) has announced a delay in its decision on multiple altcoin ETFs, including the Grayscale Spot XRP ETF, 21Shares Spot XRP ETF, WisdomTree Spot XRP ETF, Bitwise Spot XRP ETF, and Canary Spot XRP ETF.
Despite the prolonged wait, this news appears to have had a positive impact on the crypto market and on the asset itself, driving XRP’s price up nearly 20% in a short period. Could this be a sign of a stronger rise trend for XRP in the near future?
The Presence of XRP
XRP, commonly known as Ripple, is a cryptocurrency that serves as the native token of the XRP Ledger, an open-source, public blockchain. It was created to enhance global financial transfers and currency exchanges, offering transactions that settle in 3 to 5 seconds at a fraction of the current price of a cent per transaction. This makes it particularly suitable for cross-border payments and other financial operations.
Learn more: How to Buy XRP?
Source: Ripple
How Does XRP Work?
The XRP Ledger operates on a consensus protocol that differs from traditional Proof-of-work (PoW) and proof-of-stake (PoS) mechanisms. It employs a Byzantine fault-tolerant consensus mechanism, where transactions are validated by a network of independent validator nodes, organized into Unique Node Lists (UNLs). Each participant in the network chooses a set of trusted validators, and consensus is reached when a large enough percentage agrees on a set of transactions, typically within 3 to 5 seconds, as detailed in Consensus Protocol.
This process is energy-efficient, avoiding the computational intensity of mining, and is designed to handle Byzantine failures gracefully, ensuring reliability even in adverse conditions.
Tokenomics XRP
Token Details
- Ticker: XRP
- Blockchain: XRP Ledger
- Consensus: XRP Ledger Consensus Protocol
- Total Supply: 99,986,343,905 (approx. 100 billion)
- Circulating Supply: 58,108,919,817 (approx. 58 billion)
- Max Supply: 100,000,000,000
- Market Cap / FDV: 0.58
- Fully Diluted Valuation: $229,314,433,355
XRP Utility
- Bridge Currency: XRP acts as a bridge currency in the Ripple network, facilitating transactions between different fiat currencies. This enables faster and more efficient cross-border payments by providing liquidity and reducing the need for pre-funded nostro accounts.
- Liquidity Provision: Financial institutions and payment providers can use XRP to source liquidity on-demand, reducing the costs associated with maintaining nostro accounts in various currencies.
- Transaction Fees: Each transaction on the Ripple network incurs a small fee, denominated in XRP, which is destroyed (i.e., removed from circulation). This mechanism helps protect the network from spam and incentivizes efficient use of resources.
- Micropayments and Remittances: Due to its fast transaction times and low fees, XRP is suitable for micropayments and remittance services, providing an affordable solution for transferring small amounts of money globally.
Token Allocation XRP
Total Supply and Initial Distribution
The total supply of XRP is 100 billion tokens, with no additional tokens created thereafter. The initial distribution is confirmed across multiple sources, with Ripple Labs holding 80 billion tokens (80%) and the founders retaining 20 billion tokens (20%). Specifically, according to CoinCodex, 80% of the total supply was allocated to the fintech company OpenCoin, later renamed Ripple Labs in 2013 and then Ripple in 2015.
The remaining portion went to three founders: Chris Larsen, Jed McCaleb, and Arthur Britto, with each receiving 9.5 billion and 1 billion tokens, respectively, totaling 20 billion.
Source: Messari
XRP Price Prediction
XRP Fundamental Analysis: Understanding Its Potential and Future Prospects
Strategic Partnerships with Major Financial Institutions
Ripple has established collaborations with numerous leading banks and financial organizations worldwide to optimize cross-border payment services. Notable partners include:
- Banks and Financial Institutions: Bank of America and JP Morgan use Ripple’s xCurrent to optimize cross-border transactions.
- Exchanges and Stablecoins: Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish are distribution partners for the RLUSD stablecoin, according to Business Wire.
- Academic Collaboration: Ripple collaborates with Berkeley Haas to conduct comprehensive research on fintech.
- DFSA licensing has paved the way for Ripple’s operations within the United Arab Emirates (UAE)
Learn more: Ripple gained licenses from DFSA, enabling activities in the UAE
Positive Impact from President Donald Trump’s Policies
The announcement by President Donald Trump to establish the United States’ “Strategic Cryptocurrency Reserve,” including XRP, has significantly boosted the currency’s value. Following the announcement, XRP’s price surged from $2.00 to over $2.93, with trading volume reaching a record 19.1 billion XRP.
Resilience and Growth Potential
Despite the cryptocurrency market’s volatility, XRP has only declined by 39.8% from its all-time high (ATH), which is considerably less than many other cryptocurrencies. This resilience indicates XRP’s potential for growth when positive market signals return.
With a solid foundation of strategic partnerships, supportive policies, and impressive resilience factors, XRP remains an attractive option for investors seeking opportunities in the crypto market.
The ascendancy of Trump to the presidency has significantly contributed to the remarkable price surge of XRP, establishing it as one of the top-performing cryptocurrencies. Amidst the current market doldrums, positive policy shifts from the administration could serve as a catalyst for XRP’s resurgence.
Overview of the XRP Chart
Recent Price Trend Analysis
Over the past week, XRP has experienced notable fluctuations:
- Early March Decline: The cryptocurrency market faced a downturn, with XRP’s price dipping below $2 for the first time since November.
- Mid-March Recovery: By March 12, 2025, XRP rebounded to $2.24, reflecting a 5% increase from its recent low.
- Current Stabilization: As of today, XRP continues to stabilize around the $2.29 mark, indicating a consolidation phase.
What’s Next on the XRP Chart?
Source: TradingView
Source: TradingView
XRP has shown strong price action after breaking a key trendline resistance, signaling a potential rise continuation. With Bitcoin experiencing a rebound and the overall crypto market showing signs of recovery, XRP could be poised for significant upward movement.
Bitcoin’s Recovery
Source: TradingView
Bitcoin is currently showing a strong rebound, which could provide favorable conditions for altcoins like XRP to gain traction.
- On the H4 timeframe, there is a bullish divergence along with a stop hunt, indicating a possible reversal after the price sweep at $78,200.
- On the D1 timeframe, a positve engulfing candle has formed, suggesting strength. However, an additional green daily candle would provide better confirmation of an uptrend.
- Bitcoin is currently facing H4 resistance around $80,000 – $80,200, where a short-term pullback could present better long entry opportunities.
XRP Technical Analysis
Trendline Breakout
The recent price action of XRP has resulted in a decisive breakout from a descending trendline, which had been acting as resistance. This breakout is a bullish signal, indicating a shift in momentum.
Support and Resistance Levels
- Immediate support: $2.10 – $2.15 (recent breakout retest zone)
- Key resistance: $2.40 – $2.50 (next major supply zone)
- If XRP can sustain above $2.20, further upside potential towards $2.80 and beyond remains strong.
Indicators Confirm Bullish Sentiment
- The RSI is moving towards the bullish zone, indicating increasing buying pressure.
- Volume has increased on the breakout, confirming strong participation from traders.
- The MACD line is crossing above the signal line, another confirmation of bullish momentum.
Expected Price Range Targets
- Short-term target (Scalping potential): $2.40 – $2.50.
- Medium-term target (3 months from now): $2.80 – $3.00.
- Long-term target (4-8 months from now): $3.50.
Conclusion
With the clear break of the trendline and strong technical indicators, XRP appears ready for further upside movement. Traders should watch for a confirmed retest of the breakout zone around $2.15 as a potential buying opportunity. If Bitcoin continues its recovery, XRP could gain even more momentum, pushing it toward higher price targets.
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