In anticipation of today’s Federal Open Market Committee (FOMC) statement, Ripple Labs-backed XRP has surged, marking a significant upswing in its market performance. With a fully diluted valuation approaching $65 billion and a robust daily trading volume averaging around $3 billion, XRP has recently gained over 8 percent within 24 hours, reaching a peak of approximately $0.657.
This surge has propelled XRP back to the sixth position in market cap rankings, surpassing Circle-backed USDC. The bullish momentum can be partly attributed to a noticeable decoupling from Bitcoin and other cryptocurrencies, evidenced by on-chain data revealing a surge in accumulation among large entities. According to Santiment's data, the number of XRP holders with balances exceeding 10,000 units has spiked to a six-month high, reaching approximately 279,400 accounts.
The recent growth of XRP is primarily fueled by enhanced fundamentals within Ripple Labs, particularly in the Web3 sector. Ripple developers have made significant strides in improving the XRP Ledger (XRPL), making it more attractive to decentralized finance (DeFi) projects worldwide. Key developments include the launch of a native XRPL decentralized exchange (DEX), an automated market maker (AMM), and an Ethereum Virtual Machine (EVM)-compatible sidechain. Ripple plans to further expand its influence by launching a USD-backed stablecoin (RLUSD) on both the XRPL and Ethereum networks, in collaboration with ClearBank and Zero Hash.
In parallel, the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) is showing signs of potential resolution, following the SEC's decision to drop several investigations against crypto projects. A settlement could be on the horizon, which would likely bolster market confidence in XRP.
From a technical perspective, XRP is poised to retest its yearly high of $0.75 if it maintains a closing price above $0.66 over the next few weeks. The bullish outlook is supported by the breakout of the weekly Relative Strength Index (RSI) from a declining trend and consistent closures above the 50 and 200 daily Moving Averages (MAs). In the event of broader market volatility, XRP is anticipated to find solid support levels between $0.54 and $0.50, providing a cushion against potential downside risks.
With improved fundamentals, strategic partnerships, and positive legal developments, Ripple's XRP is demonstrating strong growth prospects in the cryptocurrency market. Investors and stakeholders are closely watching the outcome of the FOMC statement and ongoing legal proceedings, which could further influence XRP's trajectory in the coming weeks.
July 2024, Cryptoniteuae