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- XRP surged 80% since April, hitting $2.9695 as ETF inflows and Bitcoin highs boosted sentiment.
- Teucrium XXRP ETF sees rising demand, offering 2x daily XRP returns despite a 1.89% expense ratio.
- Ripple CEO’s D.C. visit and CLARITY Act talks fuel investor hopes for clear crypto regulations.
XRP has risen almost 80% since its lows in April, hitting a five-month high of $2.9695 on July 11. This is the strongest since March 2 and indicates improved vigour of the crypto market. The rally coincides with Bitcoin reaching a new all-time high to pace above $118,300 and rising demand in digital assets.
XRP experienced a sudden increase for three reasons. The price rise of Bitcoin had an effect of boosting the market sentiment of altcoins. The Teucrium 2X Long Daily XRP ETF (XXRP), a new and recently launched ETF, experienced increasing inflows. The fact that Ripple CEO Brad Garlinghouse appeared in Washington before discussions of the proposed CLARITY Act contributed to investor confidence.
ETF Fuels XRP Rally
The XXRP, established in April, has continued to receive weekly inflows of funds and currently has assets under management of $248 million. It has an expense ratio of 1.89%, well above the average expense ratio that ETFs have. Nevertheless, the leverage of the fund, which promises returns twice the daily XRP yield, has maintained a high level of interest.
Last week, XRP rose 24%, and XXRP rose 51%, as the fund is designed to leverage. The ETF is allowing short-term traders and other speculators to take advantage of intraday price swings. This inflow has played a direct role in the recent strength of the token.
Source: TradingView
The Washington visit by Garlinghouse was at an opportune moment. The legislature is considering the CLARITY Act, a bill that proposes to divide responsibility to oversee crypto between the SEC and the CFTC. Such possible legal clarity has spurred the interests of investors, especially those interested in the continuous Ripple litigation.
XRP Breaks Key Resistance
XRP has gone above a downward-sloping trendline that has been intact since January. The price breakout in a triangle pattern of long duration indicates a momentum change. The bullish crossover has been formed between the 50-day and the 100-day Exponential Moving Averages (EMAs).
The ADX has now increased to 25, indicating that the strength of the trend has also increased. These technical metrics help corroborate the premise that the rally of XRP could persist over the short term. The next resistance area that market players are currently monitoring is the year-to-date high of $3.3930.
Source: TradingView
As ETF inflows are still increasing and there is a potential for regulatory clarity, XRP might retain its bullish trend. Nevertheless, volatility could be caused by any change in sentiments or delays in regulations. At this point, XRP is one of the most performing cryptos in the impending crypto cycle.
