- XRP climbs on Monday as traders digest the news of the SEC’s approval of ProShares XRP futures ETFs and their debut later this week.
- Bitcoin hovers around $95,000 amidst a market-wide recovery in crypto prices.
- Ripple President Monica Long killed the speculation surrounding an IPO.
XRP climbs over 3% on Monday, hovering around $2.33 at the time of writing. The rally is likely catalyzed by key market movers like XRP futures Exchange Traded Funds (ETFs) approval by the US financial regulator, the Securities and Exchange Commission (SEC), and a bullish outlook from technical indicators amid a broader crypto market recovery.
XRP holders awaited an announcement from Ripple regarding an IPO in 2025. However, Ripple President, Monica Long, ended the speculation on the subject and affirmed on Thursday that the payment remittance firm has “billions of dollars in cash,” and is financially strong.
SEC greenlights ProShares futures ETFs, traders await spot approval
The SEC greenlighted the ProShares Trust’s launch of multiple XRP futures ETFs, with the effective date set for Wednesday. Traders are awaiting the approval of spot ETFs, and the wait may be longer than anticipated in the US In Brazil, however, the first-ever XRP spot ETF made its debut on the main stock exchange B3 on Friday, according to an official press release.
SEC approved the ProShares UltraShort XRP ETF, ProShares Ultra XRP ETF, and ProShares Short XRP ETF; all three products are designed to provide leveraged and inverse exposure based on the price of XRP futures.
No IPO plans, Ripple holds billions of dollars in cash
Addressing the speculation that financial giant Ripple will go public in 2025, President Monica Long told in an interview that the payment remittance firm is financially strong and has no plans to go public.
In an episode of Beyond the Valley on Thursday, Long told ’s Arjun Kharpal that Ripple has plans for its stablecoin push and the real-world asset tokenization narrative.
Ripple has no need for external capital to follow through with plans in 2025. CEO Brad Garlinghouse has previously commented on IPO plans and said that plans are likely to be pursued once the legal dispute with the SEC officially ends.
XRP Price Prediction: 8% rally likely, technical indicators turn bullish
XRP extends recent gains and hovers around $2.33 at the time of writing on Monday.
The XRP/USDT daily price chart shows that the price could rally 8% and test resistance at $2.51, the 50% Fibonacci retracement of the decline from the $3.40 peak to the $1.62 low. If XRP sees a daily candlestick close above $2.51, it could test resistance at $2.72 and $2.72, the 61.8% Fibonacci retracement and the lower boundary of the Fair Value Gap (FVG) on the daily chart, respectively.
The Relative Strength Index (RSI) indicator reads 62 in the daily chart, above its neutral level and sloping upwards, indicating rising bullish momentum. The Moving Average Convergence Divergence (MACD) indicator flashes consecutively green histogram bars above the neutral line, signaling an underlying positive momentum in the XRP price trend.
XRP/USDT daily price chart
On the other side, the 23.6% Fibonacci retracement at $2.04 is a key support for XRP. A flash crash in Bitcoin or a market-wide correction could send the altcoin to test this level.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
