XRP’s Bullish Momentum Surges Amid ETF Launch and Rising Open Interest
Ripple’s XRP is experiencing a surge in bullish momentum, currently trading around $2.43 on Thursday. This upward trend is fueled by positive sentiment in the broader cryptocurrency market, particularly after Bitcoin’s impressive rally to new all-time highs near $111,880. Key support levels at $2.40, along with the 50-day EMA at $2.29 and the 100-day EMA at $2.26, reinforce the optimistic outlook for XRP.
Bitcoin’s price recovery, driven partly by concerns over U.S. debt sustainability, has triggered gains in altcoins like XRP and meme coins.
Volatility Shares to Launch XRP Futures ETF on NASDAQ
Volatility Shares is set to introduce the first XRP futures ETF on the Nasdaq stock market on Thursday. The fund, part of the Volatility Shares Trust, will trade under the ticker XRPI.
The company plans to allocate at least 80% of its net assets to XRP-linked instruments, offering investors exposure to XRP futures through a subsidiary based in the Cayman Islands. Additionally, Volatility Shares intends to launch a 2x XRP futures ETF, promising double the daily appreciation of XRP through leveraged exposure.
VolatilityShares is launching the first-ever XRP futures ETF tomorrow, ticker $XRPI.. yes there is a 2x XRP already on market (this is first 1x) and it has $120m aum and trades $35m/day. Good signal that there will be demand for this one.
This move follows Teucrium Investment Advisors’ launch of a leveraged XRP ETF in April, indicating growing institutional interest in XRP-related financial products.
The market dynamics for XRP have improved with the recent introduction of XRP futures contracts by the Chicago Mercantile Exchange (CME). The ongoing legal battle between Ripple and the SEC is also nearing resolution, with both parties agreeing to a $50 million settlement and jointly requesting a withdrawal of appeals. Despite the court’s initial denial, Ripple and the SEC are committed to working together to meet the requirements for a final ruling.
XRP’s Bullish Trend Strengthens as Open Interest Soars
XRP’s bullish trend is gaining traction, with open interest (OI) surging nearly 25% to $4.96 billion. This increase signifies strong market participation, accompanied by a trading volume that has risen approximately 59% to $6.59 billion in the last 24 hours.
This substantial influx of capital, combined with increased trader interest, supports a potential push towards $3.00. The daily chart highlights this possibility, with XRP positioned above key moving averages, including the 50-day EMA at $2.29, the 100-day EMA at $2.26, and the 200-day EMA at $2.05.
A trendline, originating from a previous low at $1.61, confirms the strength of the bullish trend, forming a pattern of higher lows.
With the Relative Strength Index (RSI) at 56 and trending upwards towards the overbought region above 70, XRP is building momentum for its medium-term target of $3.00. Given that it is not yet overbought, bulls have room to push higher before profit-taking potentially triggers a reversal.
SEC vs. Ripple: Key Questions Answered
Here’s a breakdown of the SEC’s lawsuit against Ripple:
Is XRP a security?
It depends on the transaction, according to a court ruling on July 14:
- For institutional investors or over-the-counter (OTC) sales, XRP is considered a security.
- For retail investors who purchased the token through programmatic sales on exchanges, demand liquidity services, and other platforms, XRP is not a security.
What were the SEC’s allegations?
The Securities and Exchange Commission (SEC) accused Ripple and its executives of raising over $1.3 billion through an unregistered asset offering of the XRP token.
What was the court’s ruling?
While the judge ruled that programmatic sales are not considered securities, sales of XRP tokens to institutional investors are investment contracts. In the latter case, Ripple did violate U.S. securities law and will continue to litigate over the approximately $729 million it received under written contracts.
What are the implications of the ruling?
The ruling offers a partial victory for both Ripple and the SEC, depending on the perspective. Ripple gains a significant win because programmatic sales are not considered securities, which could bode well for the broader cryptocurrency sector. However, the ruling does not fully clarify what makes a digital asset a security, leaving uncertainty for other cases involving digital assets.
What is the SEC’s stance on crypto?
The SEC has intensified its enforcement actions toward the blockchain and digital asset sector, filing charges against platforms like Coinbase and Binance for alleged violations of U.S. securities law. The SEC asserts that most crypto assets are securities and, therefore, subject to strict regulation.
What’s next in the Ripple case?
The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it beforehand. The case is in a pre-trial phase, where both Ripple and the SEC still have the option to reach a settlement.
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