Ripple (XRP) Eyes Historic Highs Amid Regulatory Optimism
Ripple’s XRP is making another push, gaining over 1% to trade around $2.95 during Wednesday’s American session. After a slight pullback from highs just above $3.00 reached on Monday, XRP found solid support above $2.80. With the bullish trend seemingly back on track, the focus is quickly shifting towards the all-time high of $3.40, set back in January.
Market Summary: US Crypto Bill Approvals Could Fuel XRP Rally
President Trump intervened on Wednesday, aiming to reignite momentum for cryptocurrency legislation after a setback in the House of Representatives on Tuesday. A vote of 196–222 failed to advance the bill.
President Trump stated that 11 out of 12 House representatives he met with agreed to support the GENIUS Act, which paves the way for establishing regulations for stablecoins.
Lawmakers in the House are expected to discuss the CLARITY Act and the Digital Bank Central Currency (CBDC) Surveillance Act during the current ‘Crypto Week’.
Approval of these bills could position the U.S. at the forefront of innovation in the cryptocurrency industry. By establishing a clear framework, investor interests would be protected while advancing adoption. President Trump believes these key pieces of legislation could propel the country to become the world’s crypto capital.
Representative French Hill told CNBC on Wednesday that there are enough votes in the House to pass all three cryptocurrency bills, including the Senate’s GENIUS Act, which was approved in June.
“I think the House has the votes for those three measures, and the President is working this morning on how they will be coordinated and presented to the House for its consideration,” Hill said.
Cryptocurrency-based companies like Ripple could greatly benefit from the approval of the GENIUS Act and the CLARITY Act, especially considering the company issues two tokens: XRP and the stablecoin RLUSD.
Ripple has been working to expand its stablecoin infrastructure and Ripple Payments in the U.S., Europe, and Asia. RLUSD is a regulated stablecoin designed for institutions, serving as a bridge between the digital asset economy and the traditional financial system. Ripple Payments is a platform primarily used for cross-border value transfers using XRP.
Investor interest in XRP has remained steady in recent weeks, with open interest in futures contracts increasing from $3.54 billion on June 23 to $7.9 billion at the time of writing.
However, a 45% drop in derivatives market volume to $13 billion in the last 24 hours reflects the instability that followed the rally above $3.00 on Monday and the immediate drop to the $2.80 support level. Low volumes indicate reduced market activity, which could hinder a steady increase in the price of XRP.
On the other hand, XRP is experiencing growing adoption, as evidenced by the number of new addresses, which has reversed a downward trend after a drastic drop to 2,752 on April 19. Data shows that the number of new addresses joining the XRP Ledger averaged 8,690 on Monday. If this trend continues, it will signal an increase in the adoption and demand for XRP, and in turn, could push the price towards all-time highs.
Technical Outlook: XRP Maintains Bullish Stance
The price of XRP sits significantly above key moving averages, including the 50-day Exponential Moving Average (EMA) at $2.37, the 100-day EMA at $2.30, and the 200-day EMA at $2.16. All of these averages reinforce the bullish outlook and could serve as support levels in the event of a trend reversal.
The Moving Average Convergence/Divergence (MACD) indicator reinforces the bullish structure, maintaining a buy signal since June 28. Traders may maintain their exposure as long as the blue MACD line remains above the red signal line.
A break and close above $3.00 would solidify the bullish outlook and increase the likelihood of a breakout towards the all-time highs of $3.40.
Still, with the Relative Strength Index (RSI) overbought at 81, caution is advised. Higher RSI readings above 70 often signal a potential trend reversal as the market becomes overheated. Therefore, should the RSI fall below 70, the price of XRP could retrace accumulated gains towards the 50-day EMA support at $2.37.
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