Ripple’s native cryptocurrency, XRP, gained 8% today and managed to recover from this week’s losses, despite Bitcoin and Ethereum still not being over the correction. Currently, it trades at $2.49 and stands in third place by market cap, minimally above Tether.
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Steady Situation, Despite Fluctuations
Over the past quarter, XRP has shown impressive growth, skyrocketing by over 350% and reaching above $2.70 at its peak. Some investors were worried that such rapid growth might result in a crash, wiping out the gains. However, this does not seem to be the case – despite the huge volatility and negative news (such as Jerome Powell’s comments or JOLTS survey results), Ripple’s price, in the end, did not change much since last month and hovers around $2.40.
This resistance is a strong sign of Ripple’s position, especially since many major cryptocurrencies have not managed to hold their levels in the same manner – Bitcoin lost 7% last month, Ethereum 17%, and Solana almost 20%. Only BNB is somewhat stable, with a 3% monthly loss.
Why XRP Stays Strong
Ripple started its surge when Donald Trump proposed tax benefits for American cryptocurrencies. This caused a rise for XRP and other U.S.-based crypto assets, such as Cardano, Hedera, Algorand, and Stellar. However, Ripple is the largest among the surging coins, and its founders are actively participating in upcoming changes. Ripple CEO Brad Garlinghouse has even recently met with Donald Trump.
The proposed regulatory changes by Donald Trump (such as replacing the chair of the SEC) will greatly benefit Ripple, and might even cause the lawsuit appeal by the SEC to be dropped, finally granting Ripple regulatory clarity after years of struggles.
Adding to the positive sentiment, Ripple President Monica Long has expressed strong optimism about the imminent approval of a spot XRP exchange-traded fund (ETF). An XRP ETF could open the door for more traditional investors to enter the market, further boosting XRP’s adoption and price.
There are many developments around Ripple’s recently launched stablecoin, RLUSD, as well – recently, trading volumes exceeded $100 million daily. With the introduction of MiCA in Europe targeting Tether, RLUSD might be an alternative stablecoin if it manages to comply with the new rules.
Whale Activity Signals Confidence
Another encouraging sign for XRP is the recent activity from large investors, often referred to as whales. In the last few days, Ripple whales have purchased around one billion XRP coins, worth over $2 billion. This significant accumulation points to strong confidence in XRP’s future.
Beyond whale activity, XRP is seeing a steady increase in the number of wallets holding the cryptocurrency. Since the start of the year, there has been an addition of 58,000 new XRP wallets. More wallets mean that more people are choosing to invest in XRP, believing in its future potential. Unlike short-term price fluctuations, wallet growth reflects a deeper, more sustained interest in the cryptocurrency.
Moreover, not long ago on Asian exchanges, XRP managed to have higher trading volume than both Bitcoin and Ethereum. All these factors are strong indicators of increasing user adoption and investor trust in Ripple’s ecosystem.
Final Thoughts
XRP, despite recent volatility caused by crypto market corrections, manages to hold the $2.40 level and outperforms Bitcoin and Ethereum. This strength is driven by high expectations around regulatory changes in the USA that might provide tax benefits, regulatory clarity, and potential ETF acceptance for Ripple. The Ripple founders’ meeting with Donald Trump further boosts these expectations.
Non-price factors, such as the growing number of wallets, high trading volumes, and significant whale purchases, also indicate that Ripple is in a strong position. Developments around its RLUSD stablecoin are progressing well. Many investors believe that the surge at the end of 2024 might have just been the beginning of Ripple’s growth.
It is important to remember, however, that Ripple is still a cryptocurrency – despite its strong position, success cannot be taken for granted. Significant volatility in the crypto sector could rapidly change the outlook, so investors should continue researching the news to make informed decisions.
