XRP ETF talks gain traction as holders await SEC lawsuit ruling
- Ripple validator conducted a poll that shows 65% respondents believe XRP ETF is likely in 2025.
- XRP holders await a ruling in the SEC vs. Ripple lawsuit that has dragged since 2020.
- XRP wiped out nearly 2% of its value on the day.
Ripple (XRP) holders are awaiting a ruling in the Securities and Exchange Commission’s (SEC) lawsuit against the payment remittance firm. A court ruling was awaited in May 2024, however there is no update, as of Monday, May 27.
XRP wiped out nearly 2% of its value on Binance, on Monday.
Daily Digest Market Movers: XRP Ledger validator conducts poll to gauge ETF optimism
- XRP Ledger validator on X, behind the handle @Vet_X0 recently conducted a poll to gauge the optimism among market participants.
- The validator’s poll had 876 respondents, of which 66% responded positively to the question, “Will there be an XRP ETF in 2025?”
Will there be an XRP ETF in 2025 ?
— Vet ☠️ (@Vet_X0) May 24, 2024
- Nearly 34% respondents answered in the negative, suggesting that a group of XRP holders/ market participants are not sure that the altcoin could see an ETF approval in 2025.
- Nate Geraci, President at The ETF Store Inc, an investment advisor firm notes that a week ago the crypto community believed that Spot Ethereum ETFs would be denied, in a turn of events, now there is talk of Solana (SOL) and XRP ETFs.
A week ago, everyone thought spot eth ETFs would be denied…
Now people talking about sol & xrp ETFs.
Wild turn of events.
— Nate Geraci (@NateGeraci) May 27, 2024
- While XRP holders attention has shifted to the likelihood of an XRP ETF approval by 2025, the community awaits a ruling in the SEC vs. Ripple lawsuit.
- In 2020, the SEC alleged that Ripple sold unregistered securities (XRP) to institutional clients and demanded $2 billion in penalties. There is a possibility of the SEC appealing the programmatic sales ruling by Judge Analisa Torres, where the judge says that the sale of XRP on exchange platforms (secondary market sales), do not constitute securities.
- Ripple has countered the SEC’s demand for $2 billion in fines with an offer of $10 million.
Technical analysis: XRP eyes nearly 7% gains
Ripple is currently in an uptrend, it started on April 18. The altcoin has consistently formed higher highs and higher lows, momentum indicators on the 1-day timeframe support the thesis of gains in XRP price.
XRP sustains above $0.5300 on Monday, nearly 1% gain on the day, and the green histogram bars on the Moving Average Convergence Divergence (MACD) indicator shows underlying positive momentum in Ripple’s uptrend.
The Relative Strength Index (RSI) reads 52.11, above the neutral level of 50, it signals bullishness in XRP’s trend.
The target is $0.5703, the April 22 and May 6 high for XRP price, 7.29% rally from the current level.
XRP/USDT 1-day price chart
The altcoin could find support at the May 13 low of $0.4866. Sweeping liquidity at this level could prepare the stage for a reattempt at recovery, since the altcoin has recovered from similar lows on several occasions between April 20 and May 26.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.