XRP Surge Driven by Bitcoin Rally and ETF Speculation
XRP’s recent price increase is attributed to a modest recovery in the cryptocurrency market, largely led by Bitcoin’s rally and a rising demand from institutional investors. Notably, Franklin Templeton has filed for a spot XRP ETF, increasing speculation surrounding ETF approvals, thereby fueling XRP’s gains and sentiment among investors.
The cryptocurrency market exhibited signs of recovery, notably led by Bitcoin (BTC) and Ripple Labs’ XRP, following a recent downturn. In a span of 24 hours, Bitcoin witnessed a price increase of approximately 2 percent, trading around $81.6k during early Asian hours on March 12. This upward trend has alleviated concerns of further capitulation within the market, as indicated by a rise in Bitcoin’s fear and greed index from 20 percent to 34 percent.
XRP’s performance reflected a significant rebound of over 10 percent within the last day, recovering from its previous lows just below the crucial support zone between $2 and $1.9, now trading at about $2.15. The cryptocurrency maintains a fully diluted market valuation close to $215 billion, with an average trading volume of approximately $6.9 billion over the past 24 hours. Technical indicators suggest that XRP is approaching a major bullish breakthrough, particularly if Bitcoin hits macro growth momentum exceeding $100k.
One of the primary drivers for XRP’s upward momentum today is the increasing interest from institutional investors. Notably, Franklin Templeton, a prestigious fund manager managing assets exceeding $1 trillion, has recently filed an application with the U.S. Securities and Exchange Commission (SEC) for a spot XRP exchange-traded fund (ETF). Franklin Templeton’s initiative aligns with similar applications from other major fund managers, including Bitwise Management, Canary Capital, 21Shares, WisdomTree, and Grayscale Management.
Additionally, the U.S. SEC postponed its decision regarding Grayscale’s application for a spot XRP ETF, which has enhanced expectations for a potential approval of a spot XRP ETF in the U.S. This speculation has escalated the likelihood of approval to approximately 73 percent, reflecting a 3 percent increase on Polymarket in the last day.
Overall, if the price of Bitcoin sustains its upward trajectory, it is anticipated that such momentum will contribute positively to XRP’s future price performance as well. An XRP ETF, if established, could significantly enhance its legitimacy, drawing institutional investment and increasing market liquidity, thereby driving potential long-term price appreciation.
In summary, XRP has seen a remarkable recovery alongside Bitcoin, bolstered by positive institutional interest, particularly following Franklin Templeton’s ETF application. The anticipation surrounding the potential approval of a spot XRP ETF has significantly influenced investor sentiment. The current upward momentum is promising, suggesting that XRP may experience further gains, especially if Bitcoin continues its impressive rally.
Original Source: coinpedia.org
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