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Over 13M XRP Locked in AMM Pools as XRP Ledger Liquidity Grows

Elendu Benedict
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Over 13M XRP Locked in AMM Pools as XRP Ledger Liquidity Grows

Liquidity within the XRP Ledger AMM pools has crossed the 13 million XRP mark, reflecting a growing traction towards AMMs on the network.

The automated market maker (AMM) pools, which have been sources of liquidity for the XRP Ledger decentralized exchange, have been on a steady ascent amid growing demand. Data from XRP Scan shows that the total amount of XRP within these pools has crossed 13 million.

The growing trend bolsters liquidity on the XRPL DEX, cushioning transactions and trading activities. It also reflects users’ increasing interest in pooled transactions, boosting the total value locked in the network.

More Liquidity on the XRP Ledger

The data shows that the total XRP pooled within the XRPL AMMs stands at 13,276,182 XRP, worth $30 million at the current market price. Notably, these numbers have increased substantially over the past months amid renewed interest in liquidity provision.

Meanwhile, the number of AMM pools has surged drastically, particularly coinciding with XRP’s impressive price performance. Currently, there are 18,468 active AMM pools on the XRP Ledger and 17,059 total assets.

XRPL AMM Pool
XRPL AMM Pool

Remarkably, these growing numbers followed the launch of the RLUSD/XRP AMM pool. With the recent AMM Clawback amendment gaining validator consensus, the pool pair went live on the XRP Ledger, instantly gaining traction among liquidity providers.

Since then, its liquidity has surged to become the fourth largest on the network, with 671,272 XRP ($1.52 million) locked in. Notably, the CRYPTO/XRP pool has the largest XRP stake, with 3.8 million XRP ($8.7 million).

Bullish Reactions Trail Development

Meanwhile, the surging TVL on AMM pools has attracted bullish claims among enthusiasts of the XRP ecosystem. For instance, while revealing the impressive stats, XP Market insisted that the XRP Ledger is the place to be.

Another reaction highlighted an all-rounded positive outlook for XRP. The user cited the growing liquidity and thriving ecosystem as propellants for the impending bullish momentum.

Notably, recent analysis suggests that the XRPL AMM pools could provide a hedge against market downsides. Panos Mekras, the co-founder of the XRPL-facing machine Anodas, stated that although it has drawbacks during market uptrends, providing liquidity to a token/stablecoin pair could help cushion the impact on investment when prices go down.

Here’s the Next Major Shiba Inu Support to Watch After 11.75% Slump Below $0.000015

Sam Wisdom Raphael
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Here’s the Next Major Shiba Inu Support to Watch After 11.75% Slump Below $0.000015

Shiba Inu now has a new major support level to defend following the 11.75% price drop yesterday on the back of the broader market crash.

The crypto market has continued to face bearish pressure, as Bitcoin (BTC) consolidates below $100,000. Notably, this downtrend intensified yesterday, triggering a massive market slump which pushed Shiba Inu (SHIB) below major support levels.

Yesterday’s downward push was due to rising risk aversion driven by labor market concerns amid potential federal layoffs led by Elon Musk’s Department of Government Efficiency and escalating trade tensions as President Donald Trump insists on tariffs for Mexico and Canada.

New Shiba Inu Support Zone

Amid the market crash, SHIB dropped by a discouraging 11.75% yesterday, Feb. 24, marking its highest intraday decline in over 20 days. This pushed the asset below the $0.000015 psychological level that has acted as an important support region since Feb. 16, when Shiba Inu lost $0.000016.

With this latest crash, SHIB relinquished the $0.000015 and $0.000014 psychological support levels in one fell sweep, triggering concerns around a more substantial decline in the absence of a strong support level. Now, IntoTheBlock data has confirmed the next major support region to watch.

Particularly, this support rests between the $0.000013 and $0.000014 range. According to the data, about 35,900 addresses purchased 14.9 trillion SHIB tokens within this range at an average price of $0.000014. This has provided a demand wall for the meme coin, capable of defending against the ongoing pressure.

Shiba Inu Support Wall IntoTheBlock
Shiba Inu Support Wall | IntoTheBlock

SHIB in a Delicate Position

However, with just 14.9 trillion SHIB at this level, it is important to note that this demand wall is not as reliable as the previous one, which featured a whopping 547 trillion SHIB. This past support, which has now flipped to resistance, defended SHIB against a drop below $0.000014 until the latest market crash.

If the 14.9 trillion SHIB support gives way, the meme coin could find strength in a more reliable demand wall between $0.000008 and $0.000013, where 296,800 addresses hold 77 trillion SHIB. Despite this region boasting greater than volume, its position is delicate, representing the last defense above the pivotal $0.00001.

Shiba Inu Support Wall IntoTheBlock
Shiba Inu Support Wall IntoTheBlock

Interestingly, data from Shiba Inu’s daily chart confirms the current 14.9 trillion support region between $0.000013 and $0.000014. Notably, the daily Pivot Points reveal a primary support (S1) level at $0.000013415. Below this, the next support (S2) lies at the $0.00001291 price point, essentially underneath the $0.000013 psychological level.

Shiba Inu Daily Support
Shiba Inu Daily Support

Shiba Inu now changes hands at $0.00001366, down 7% in the last 24 hours. Further data indicates that for Shiba Inu to flip the momentum from bearish to bullish, it would need to break above the Pivot level at $0.000014217. Above this mark, the first resistance lies at $0.00001501, residing within the 547 trillion SHIB supply wall.

Bitcoin Price Crash: Will BTC Sink to $86,707 Support?

Albert Brown
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Bitcoin Price Crash: Will BTC Sink to $86,707 Support?

Bitcoin has crashed below the $90K support today, reaching fresh lows at $88,000. Will the BTC dip continue, or is a rebound likely from here?

After a massive overnight crash, the crypto market has seen $881 million in liquidations, with Bitcoin alone suffering $272 million in liquidations and Ethereum nearing $200 million.

Long-position liquidations total $809.24 million, while short liquidations amount to $72.04 million. Following the crash, Bitcoin hit a new 30-day low of $88,600. With a massive supply wave, is Bitcoin destined to fall below the $85,000 mark? Let’s explore.

Bitcoin Hits $88,600: What’s Next?

In the 4-hour price chart, Bitcoin has broken under the 23.6% Fibonacci level, as warned in our previous analysis. With this downfall, Bitcoin has dipped below the critical support of $90,000.

Bitcoin Price Chart
Bitcoin Price Chart

With the short-term price reversal, the current market price of Bitcoin remains at $89,200. In the daily chart, the overall downfall accounted for an 8.9% drop last night. This has brought Bitcoin to its lowest daily closing price since November 18, 2024.

Trading Frenzy: Bulls Jump In Despite Market Crash

With the massive crash in Bitcoin, optimistic traders have initiated a buy-the-dip frenzy over the past 24 hours. On Binance, the biggest centralized crypto exchange, the long-to-short ratio based on accounts has risen to an astronomical figure of 2.88.

Long/Short Ratio
Long/Short Ratio

This highlights that 74% of accounts holding long positions are hoping for a bullish turnaround. Meanwhile, the funding rate over Binance remains at 0.0073%.

Bitcoin Derivatives
Bitcoin Derivatives

Currently, Bitcoin’s open interest remains at nearly $60.05 billion, highlighting strong sentiment. Overall, the long-to-short ratio based on all exchanges remains at 0.944, while the options volume has risen to $4.07 billion. Bitcoin’s option open interest has risen by 3.16% to $32.60 billion.

Bitcoin Network Activity Drops to New Lows!

However, the Bitcoin network has taken a significant hit. As per Ali Martinez, a crypto analyst, the number of new Bitcoin addresses created daily has dropped to 240,534.

This marks the lowest number of new addresses created since July 2024. This might suggest a consolidation phase coming for Bitcoin.

Bitcoin New Addresses
Bitcoin New Addresses

Along with the declining number of new users, the number of active users on the Bitcoin network has reached a significant low. Currently, it is down at 681.62K active addresses, marking the lowest since October 18, 2024.

Bitcoin Active Users
Bitcoin Active Users

Critical Price Levels: Will Bitcoin Reboud $90K?

Despite the short-term optimism among crypto traders, the declining activity over the network warns of a potential consolidation or a prolonged correction phase. As per the price analysis, the $90,000 level remains a critical crossroad for Bitcoin.

Hence, a closing under this could result in a quick revisit to the $86,707 support level. Conversely, a bullish comeback will face immediate resistance at the 23.60% Fibonacci at $94,393. 

Ripple Powers DekaBank’s New Crypto Trading and Custody Services for Institutional Clients

Albert Brown
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Ripple Powers DekaBank’s New Crypto Trading and Custody Services for Institutional Clients

DekaBank launches crypto trading and custody services for institutional clients, with Ripple providing the underlying infrastructure.

The Germany-based DekaBank has introduced crypto services exclusively for institutional investors, enabling them to trade, store, and manage digital assets.

Bloomberg reported the development, noting that these services do not extend to private buyers. Meanwhile, discussions are ongoing within the savings bank group, which includes DekaBank, regarding the potential future offering of crypto services to retail clients.

Regulatory Compliance and Institutional Services

DekaBank has established itself as a regulated financial institution in the crypto market, catering solely to institutional clients. According to Board Member Martin Müller, the bank has acquired the necessary regulatory approvals, extensive experience, and a functional infrastructure to assist institutional investors and savings banks.

A major focus of DekaBank’s crypto services is security. The institution has obtained a crypto custody license from both the European Central Bank (ECB) and Germany’s Federal Financial Supervisory Authority (BaFin).

Recall BaFin granted 11 crypto custody licenses, mainly to digital asset firms. However, major banks, including DZ Bank, have not yet received such approvals. Among the institutions that secured a license was Hauck Aufhäuser Lampe Privatbank’s digital asset custody subsidiary.

DekaBank Previous Licensing and Expansion 

DekaBank’s crypto custody license was its second regulatory approval within the past year. In July, the bank received authorization as a crypto securities registrar under Germany’s blockchain-based securities regulations. 

This approval allowed the issuance of digital securities without the need for a central securities depository (CSD).

Ripple’s Involvement 

Ripple, a firm specializing in digital payments and financial solutions, commented on DekaBank’s entry into crypto custody. The company stated that the bank’s institutional crypto trading and custody services are powered by its custody solution. Ripple remarked:

“DekaBank is launching digital asset trading and custodial services for institutions on Ripple Custody. A clear sign of developing demand for institutional crypto custody solutions.”

 

MicroStrategy Chairman Saylor Says “Bitcoin on Sale” as BTC Posts Nearly 6% Losses

Okoya David
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MicroStrategy Chairman Saylor Says “Bitcoin on Sale” as BTC Posts Nearly 6% Losses

In typical fashion, Strategy (formerly MicroStrategy) Chairman Michael Saylor suggests that the recent Bitcoin sell-off presents an opportunity.

Over the past 24 hours, the crypto market has been rocked by yet another sell-off driven by macroeconomic uncertainty and geopolitical tension. For one, Bitcoin, the largest crypto asset by market cap, has dropped as much as 5.8% from Monday, February 24, highs of $96,500 to, at one point, trade below the $91,000 price point.

The losses follow growing risk-off sentiment sparked by various factors. These include labor market concerns as Elon Musk’s Department of Government Efficiency pushes federal government layoffs, worries over the AI sector as investors await Nvidia’s earnings, and trade war fears as President Donald Trump maintains that he will move ahead with tariffs on Canada and Mexico.

“Bitcoin on Sale”

Amidst this uncertainty, however, one notorious Bitcoin bull has, in typical fashion, suggested that the recent market sell-off presents an opportunity.

“Bitcoin on sale,” Strategy (formerly MicroStrategy) Chairman Michael Saylor asserted in an X post on Tuesday, February 25, suggesting that the asset looked attractive at current levels.

Historically, posts like these have often preceded fresh Bitcoin buys by Strategy as the firm has adopted a Bitcoin treasury strategy since 2020, which it has ramped up in recent months.

For instance, on Sunday, February 23, the Strategy chair shared the “Saylor Tracker,” a chart showing the firm’s Bitcoin buys, asserting that it did not reflect the work he did last week. On Monday, the firm announced $2 billion in fresh Bitcoin purchases, bringing its stash just shy of 500,000 BTC to 499,096 BTC, worth over $45.19 billion at current rates.

This recent purchase was funded by a $2 billion senior convertible note offering last week that gave initial buyers the option to procure an additional $300 million in convertible notes before February 27. If investors take Strategy up on this offer, it will be unsurprising to see the firm announce yet another Bitcoin purchase soon.

How Sustainable is Strategy’s Bitcoin Strategy?

In the meantime, debates continue to rage about the sustainability of Strategy’s Bitcoin gamble and whether buying almost every week benefits shareholders.

“If the number one goal is to MAXIMIZE BTC per share/BTC yield he’s not fulfilling shareholder value,” prominent market analyst James Van Straten recently argued.

He said this, supporting the view of fellow analyst Caleb Franzen that Strategy could maximize shareholder outcomes by positioning buys at relevant technical levels. Some suggestions made by Franzen included when the asset’s price retests, the short-term holder realized price, or key exponential moving averages.

Despite these criticisms, Strategy’s… strategy appears to be paying off for now. At current rates, its Bitcoin stash is posting paper gains of over 36%. At the same time, the firm’s share price is up more than 300% in the past year.

FTT Token Spikes 29% as FTX Founder SBF Breaks Silence on X

Albert Brown
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FTT Token Spikes 29% as FTX Founder SBF Breaks Silence on X

Sam Bankman-Fried reappeared on social media platform X, making his first post since January 2023. 

Amid this development, the FTT token, linked to FTX, saw a temporary surge of over 29%. SBF’s reappearance on social drew significant attention, especially as he shared a series of 10 posts addressing government layoffs implemented by the Trump administration. 

For context, the Department of Government Efficiency, approved by President Donald Trump to cut U.S. government spending, has reduced the federal workforce primarily through voluntary resignations.

It has also dismissed probationary employees who lack the job security of permanent staff. This approach has led to the elimination of approximately 95,000 positions.

The next phase of reductions may take a more aggressive approach, potentially affecting hundreds of thousands of additional employees.

Bankman-Fried Weighs in on Government Job Cuts

Bankman-Fried’s comments focused on the challenges of unemployment, stating that being without a job is often more difficult than anticipated. He acknowledged that dismissing employees is a tough decision, even when necessary.

He emphasized that job losses frequently stem from broader organizational issues rather than individual performance. Sometimes, businesses lack suitable positions for workers or fail to provide a compatible environment. Inefficient management can also leave entire departments without clear direction, impacting productivity.

SBF pointed out that some companies had overhired, leading to entire teams with little to do. This problem, he noted, was evident within FTX as well as among industry competitors. Ultimately, SBF noted;

“But there isn’t a point in keeping them, doing nothing.”

FTT Token Reacts to Bankman-Fried’s Online Presence

Following his social media return, the FTT token experienced a sharp price jump before retreating. Initially rising to $2.07, it later fell to $1.73, signaling a mix of speculative trading and short-term market reactions.

While his comments did not affect FTX’s legal matters, they drew significant interest from investors. His statements on employment and workplace challenges also fueled discussions about job security and economic conditions.

FTT price action amid SBF tweet CoinMarketCap
Chart showing FTT price action amid SBF tweet CoinMarketCap

Notably, the quick reversal in FTT price follows the broader market downturn, with Bitcoin crashing to $90K early today.

FTX Legal Battles and Efforts for Pardon

Currently serving a 25-year prison sentence for defrauding investors of billions, Bankman-Fried’s case ranks among the most significant financial frauds in U.S. history.

Seeking clemency, he recently turned to President Donald Trump, who pardoned Silk Road founder Ross Ulbricht.

In addition to his pardon request, Bankman-Fried is appealing his conviction, arguing that his trial should be nullified due to alleged legal flaws. His legal team continues to push for a retrial.

Meanwhile, a fake social media account falsely claimed that Trump had granted SBF a pardon. The fraudulent account, which had obtained a gray verification badge on X, also attempted to launch new MEME coins and share a contract address. The incident raised concerns about misinformation and identity fraud on the platform.

Selective Alt Season Ahead: CryptoQuant Founder Predicts Altcoins to Outperform in 2025

Abdulkarim Abdulwahab
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0
Selective Alt Season Ahead: CryptoQuant Founder Predicts Altcoins to Outperform in 2025

While market participants continue to long for a full-fledged alt season, crypto expert Ki Young Ju has forecasted an altcoin bull run that deviates from the historical pattern.

In a tweet, Young Ju, founder of on-chain analytics firm CryptoQuant, predicts a selective altcoin season for 2025. Specifically, he suggested that only specific altcoins will thrive while others will lag.

His tweet highlighted key factors that will shape the market, arguing that the days when “everything” pumps are over.

Thriving Altcoins Will Be Those with an ETF Narrative

Notably, Young Ju pointed to ETF narratives as a potential driver for altcoins. Specifically, he suggested that the altcoins with pending ETF applications will likely be among the best performers this year.

Altcoins with ETF filings include XRP, Solana (SOL), Litecoin (LTC), Dogecoin (DOGE), and Hedera (HBAR). These upcoming financial products could significantly impact their performance by attracting more institutional investors.

ETF approval has already served as a major catalyst for Bitcoin’s performance in 2024. Experts hope a similar scenario could play out for these specific altcoins.

Alt Season: Sustainable Attention is Key

Furthermore, Ju highlighted that the projects that will survive and thrive in the alt season for 2025 will be those that can maintain sustainable attention over time.

The crypto industry often thrives on hype cycles, where new tokens generate sensational interest. However, most of them fail to sustain that interest a few weeks later. 

A typical example includes the TRUMP and MELANIA meme coins, which lost almost 90% of their value within four weeks after the record-breaking sensational interest that followed their launch in January.

Ju emphasized that the altcoins that remain relevant will be those that continue to attract active developer interest, a strong community, and investor confidence.

Revenue-Generating Projects Will Shine

Furthermore, Ju noted that revenue-generating projects will be among the best performers. He suggests that altcoins with solid business models, clear use cases, and the ability to produce tangible revenue streams will outshine those lacking real-world utility.

Essentially, value-driven projects that can sustain themselves without relying solely on speculative investments will ultimately shine.

The Era of “Everything Pumping” is Over

In conclusion, Ju argued that the era of “everything pumping” in the alt season is over. In past years, the altcoin market saw a surge where many tokens experienced dramatic price increases, regardless of their fundamentals.

However, Ju predicts that only the strongest projects will endure, making this a more selective period for altcoins.

This is already playing out as Bitcoin continues to outperform up to 78% of the top-ranking crypto assets. Essentially, tokens benefiting from Bitcoin’s consistent uptrend are few.

Altcoin Season index showing Bitcoin outperfoms
Altcoin Season index showing Bitcoin outperforms | CoinMarketCap

For context, Bitcoin is breaking new highs while many altcoins remain far from their last cycle peaks. This suggests that market participants may need to be more strategic in their investment plans for this bull market to avoid missing out.

Top Analyst Says Best Yet to Come For Cardano As ADA Entering a New Price Era

Sam Wisdom Raphael
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Top Analyst Says Best Yet to Come For Cardano As ADA Entering a New Price Era

As Cardano struggles below key price levels in recent months, concerns of a potential bear market have emerged, but one analyst remains optimistic.

Notably, market analyst Dan Gambardello maintains bullishness, arguing that ADA is setting up for a major breakout. In a recent video, Gambardello pointed out that ADA’s retracement is following a pattern similar to previous cycles, suggesting that a major uptrend could be ahead.  

Cardano’s Price Action and Market Speculation

For context, since falling below $1 in late January, ADA has continued to decline, recently dropping below $0.7. This has fueled speculation that the bull market could be over. Gambardello called attention to this sentiment but stressed that it was fine to hold such a belief.

“Probably the best way to start this Cardano video is just by recognizing the fact that a lot of people out there think we’re entering a bear market, and that’s completely cool,” he remarked at the start of his analysis.

Speaking further, he explained that there are two perspectives in the market: those who believe the bear market has begun and those who see the current price action as a normal cycle retracement.  

Cardano Technicals Bullish

To prove that the bull market remains intact, Gambardello highlighted ADA’s Relative Strength Index (RSI) and moving averages. He pointed out that the monthly RSI is currently retracing to its moving average, a setup seen during the 2020/2021 bull market.  

He stressed: “We see this RSI right here crossing above this moving average line. So basically, this was the bull market for ADA.”

Cardano 1M RSI
Cardano 1M RSI | Dan Gambardello

Additionally, he noted that ADA is consolidating around the 20-week moving average, a level where price action previously preceded a major rally when it aligned with the RSI retracement. He compared this to the 2020/2021 cycle where similar movements occurred right before ADA went parabolic.  

Meanwhile, another major factor Gambardello discussed is the inverse head and shoulders pattern forming on the ADA weekly chart. He pointed out that in the last cycle, a left shoulder, head, and right shoulder setup led to massive breakouts.  

However, he initially inverted the ADA chart, which showed a bearish structure. Afterward, the analyst presented the actual chart, explaining that removing emotional bias can help traders see potential bullish setups more clearly.

Cardano Inverse Head and Shoulders
Cardano Inverse Head and Shoulders | Dan Gambardello

“It is the ADA chart inverted. And it’s such a healthy exercise to look at this chart because all of a sudden, any barrier to thinking that ADA could actually break out of this head and shoulders is removed,” Gambardello emphasized.

Further, he stressed that ADA’s RSI is consolidating around the 50 level, a strong support area. The stock RSI, a quicker momentum oscillator, is also aligning with previous right-shoulder formations before breakouts.  

Potential Support Zone: ADA Entering New Era

Notably, Gambardello pointed out that, as it trades for $0.68, ADA is currently consolidating between the 50-week and 20-week moving averages. If support holds, it could trigger a rally similar to previous cycles.  

He also pointed out a major historical price level around $0.70, where ADA has previously struggled to hold in previous cycles. According to him, if ADA can flip this level into support and close monthly candles above it, it could be a bullish signal.  

Gambardello noted that this would mark the new era for Cardano. Notably, with three days left, if ADA can close February above the $0.70 to $0.71 region and start creating higher lows from this area, it could mark the start of a new era.

Cardano 1M Support
Cardano 1M Support | Dan Gambardello

Cardano ETF Developments

Interestingly, Gambardello also highlighted major fundamental developments in the Cardano ecosystem. For one, the U.S. Securities and Exchange Commission (SEC) recently acknowledged Grayscale’s application for a Cardano-based exchange-traded fund (ETF). 

He further revealed that institutional interest in Cardano is growing, with whales accumulating ADA despite the recent price dip. He stated that he personally bought more ADA and this reaffirms his long-term bullish stance.  

“First off, I bought more ADA today, and trust me, I know, trust me, I do know, especially when I buy, it’s usually not the bottom,” the market analyst disclosed.

He added that market fear is at an extreme level, which presents a good buying opportunity for long-term investors. Currently, ADA changes hands at $0.6885, down 7.4% over the past 24 hours. The bulls must recover $0.70 before February closes to have a chance at flipping the momentum. Ultimately, Gambardello sets targets at $7, $10 and $14.2.

Cardano ETF Odds See Boost as US SEC Acknowledges NYSE Filing for Grayscale

Elendu Benedict
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Cardano ETF Odds See Boost as US SEC Acknowledges NYSE Filing for Grayscale

The US SEC has acknowledged the rule change application for a Grayscale Cardano ETF filed by the NYSE Arca, giving the chances of approval a major boost.

In a Monday release, the US Securities and Exchange Commission (SEC) acknowledged the application for a Cardano ETF filed by the New York Stock Exchange (NYSE) Arca. The product, filed in asset manager Grayscale’s stead, will track the performance of ADA, the ninth-largest cryptocurrency by market cap.

Cardano Sees Boost in the Altcoin ETF Race

Recall that on February 10, the NYSE Arca filed a 19b-4 application with the US SEC for a Grayscale Cardano Trust. The rule change request shows the intention of the exchange list and trade shares of the Grayscale-managed Cardano ETF.

The Cardano investment vehicle will provide alternative exposure to institutional and retail investors seeking exposure to ADA. Notably, the Grayscale Cardano ETF has Coinbase as a custodian and BNY Mellon as the administrator and transfer agent.

Yesterday, the US SEC acknowledged it has received the application, a major step in the approval process. Notably, the latest development came after the NYSE Arca amended the earlier filing on February 20.

With the acknowledgment, the regulator opened the window for public comments. The US SEC will allow comments for 21 days from the publication date, with the phase expected to close in mid-March.

Meanwhile, this is just the first step in the approval process. If the application advances, the NYSE Arca would submit an S-1 filing with several amendments before the securities watchdog finally approves the Grayscale Cardano Trust.

A Flurry of Altcoin ETFs Set for Approval

A year ago, the chances of launching another spot crypto ETF in the United States looked slim due to the US SEC’s disposition toward most altcoins. The Gary Gensler-led administration classified Cardano and Solana as unregistered securities, while its years-long litigation with Ripple hindered an XRP ETF.

However, the tides are quickly turning, and the odds of another altcoin ETF are escalating. The US SEC has progressed with other applications, with Litecoin and Hedera spot ETFs being the closest to approval.

The SEC has also acknowledged ETF applications for XRP, Dogecoin, and Solana, which is reasonable progress in the approval process. Notably, analysis has suggested that the investment products would facilitate capital inflow into the altcoin market, bringing a similar price effect to Bitcoin’s.

Pundit Explains Why XRP Has Not Surged Despite Positive News; Identifies What Could Trigger Next Run

Sam Wisdom Raphael
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0

A community pundit has explained why XRP has barely moved despite recent positive developments, identifying what could trigger the next upsurge.

XRP and the broader XRP Ledger (XRPL) ecosystem have seen numerous positive developments recently. From new Ripple partnerships to progress on XRP exchange-traded funds (ETFs), bullish news has been abundant. 

For instance, the U.S. SEC has acknowledged filings for multiple XRP ETFs, including Grayscale XRP ETF and prospective products from Canary Capital, WisdomTree and CoinShares. Also, discussions around XRP’s potential inclusion in a U.S. strategic reserve have emerged.

However, XRP’s price has remained subdued, currently trading at $2.48, down 2.83% in the past 24 hours. In a recent commentary, community pundit Gen A discussed the possible reasons behind XRP’s price stagnation.

Broader Market Concerns 

First, he highlighted the broader crypto market’s impact on XRP’s price. He explained that Bitcoin’s dominance plays a significant role. When Bitcoin trades sideways or declines, altcoins like XRP struggle to gain upward momentum. Currently, BTC continues to battle the bears below $100K.

Additionally, amid President Trump’s tariff hikes on imports, macroeconomic factors such as inflation concerns, high interest rates, and institutional liquidity constraints continue to affect the entire crypto market, including XRP.

Further, Gen A suggested that institutional investors currently prefer assets with clear regulatory standing. Many remain hesitant to make large investments in XRP until they see more legal certainty. He noted that despite XRP’s unique utility, it still follows general crypto market trends.  

Regulatory Uncertainty Holding XRP Back  

According to Gen A, one of the biggest factors affecting XRP’s price is the ongoing lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC). While there have been some favorable rulings for Ripple, the lawsuit is not yet fully resolved.  

Gen A pointed out that institutional investors remain cautious due to the uncertainty surrounding XRP’s classification as a security despite a federal judge confirming that the token is not a security in July 2023. Only a full resolution of the case can completely lift the legal cloud over XRP.

For context, the new SEC leadership has dropped its case against Coinbase, suspended the lawsuit against Binance and dropped investigations on NFT platform OpenSea. However, it is yet to drop the Ripple case. Many believe this is because the Ripple lawsuit is more complex, having reached the appeals phase.

XRP Supply and Liquidity Structure

The community pundit also suggested that XRP’s large circulating supply also affects its price movement. He noted that Ripple controls a significant portion of the total supply, releasing escrowed funds periodically. 

According to Gen A, these releases increase market supply and may limit price growth. However, it is important to note that the firm only releases at most 200 million XRP, which is relatively small compared to the overall market volume.  

In addition, the analyst stressed that market makers tend to absorb demand, which prevents rapid price spikes. Meanwhile, some investors speculate that whales are accumulating XRP at lower prices, keeping it range-bound until a significant catalyst appears. However, this remains speculative and unconfirmed.

Adoption Takes Time to Reflect in Price  

Notably, unlike many speculative crypto assets, XRP is gradually witnessing integration into real-world financial systems. Banks and payment providers are eyeing the token, but Gen A noted that this process takes time.  

Further, the Ripple Payments solution is also expanding, but transaction volumes may not yet be high enough to impact the price significantly. Crypto markets remain largely driven by speculation, whereas XRP’s adoption-focused approach attracts long-term investors rather than short-term traders.  

Gen A suggested that while XRP’s fundamentals are strong, the market has yet to fully price in its potential. Particularly, institutional partnerships and financial integrations need more time before they translate into substantial price movements.  

Speculation on Market Manipulation

Meanwhile, another theory within the XRP community is that large investors are deliberately keeping the price suppressed while they accumulate. Gen A mentioned that some believe whales and institutions are holding prices down before major regulatory clarity or ETF approvals.  

Market makers and liquidity providers may also be controlling buy pressure to maintain price stability. If true, this could mean that a delayed but significant price breakout could occur when institutional demand surges. However, these claims remain speculative without concrete proof.  

What Could Trigger Next XRP Run?

Despite its current stagnation, Gen A outlined several potential catalysts that could push XRP into its next major rally. First, he noted that a settlement in the Ripple case could provide the regulatory clarity necessary to attract institutional investors.  

Further, like Bitcoin ETFs, Gen A noted that an XRP ETF could drive massive institutional inflows. Besides this, he stressed that once Bitcoin breaks out of this consolidation phase, XRP price could follow with increased momentum.

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