By Michael Scott
XRP is outperforming the broader crypto market, rallying 15% in the past 24 hours, to contrast Ethereum’s 3.8% dip.
Analysts anticipate the momentum could lift the XRP above the $1 threshold with a new all-time high possible. The bullish outlook emerged as XRP finally crossed $0.80 to set the day’s peak at $0.8386 per CoinGecko data. Market observers attribute the uptrend to the recent regulatory developments coinciding with the strategic initiatives undertaken by Ripple Labs.
A look into the daily chart shows XRP is up 48.5% in the past week to change hands at $0.8167 while the market cap leaps to $46.519 billion. Analysts link the upward movement to a pair of developments, notably the resignation of Gary Gensler from the Securities and Exchange Commission (SEC). Coincidentally, the positive price action arose when Ripple affirmed its readiness to unveil the anticipated stablecoin, RLUSD.
SEC Chair Hints Possible Exit
Gensler conveyed his insight as he reflected on his tenure, reiterating the Commission’s commitment to sustain the integrity of US financial markets. The chair hailed regulatory advancements realized under his leadership, particularly reforms targeting the Treasury and equity markets.
Gensler spotlighted the ongoing enforcement efforts targeting the crypto sector, with cases accounting for 5% – 7% of actions since 2018. The chair echoed former chair Jay Clayton’s stance that underscored the position on BTC to exclude it from security classification. Nonetheless, he supports the regulatory scrutiny of the crypto assets, affirming the need to establish clear distinctions within the sector.
Gensler’s closing remarks hint at a potential exit, hailing the contributions realized by the SEC staff and expressing gratitude for his tenure in public service. Notably, the chair has overseen the modernization of regulations and scrutiny of the rapidly evolving crypto.
Ripple to Unveil RLUSD Stablecoin
Ripple’s plans to launch RLUSD, a US dollar-pegged stablecoin, are potentially fueling the recent XRP momentum. Ripple confirmed processing a $70B payment via blockchain technology. The RLUSD targets enhancing offerings by guaranteeing speed, efficiency and security.
Ripple Labs president Monica Long asserted that RLUSD stablecoin could address the growing demand across the EU, Australia and APAC. The executive confirmed the stablecoin will leverage the XRP Ledger for issuance and the Ethereum blockchain. Such will offer developers a platform for expanded usage within decentralized finance (DeFi).
Ripple Labs desires to unveil the RLUSD stablecoin under the New York Trust license. Such follows the successful acquisition of Standard Custody, which guarantees a more robust regulatory framework, unlike the money transfer license (MTL).
The New York Department of Financial Services (NYDFS) guidelines obligate the stablecoin issuers to ensure reserves backing 100% of the stablecoins in low-risk and highly liquid assets. Fulfilling this requirement will provide transparent and rigorous oversight over the RLUSD’s reserves management.
XRP Momentum for Dramatic Rally to New Horizon
Market analysts downplay that price action is frustrating XRP holders, citing that the momentum gathered will push it to a new peak. The daily chart shows XRP is trading 75.8% below the $3.40 ATH at a time when Bitcoin appears locked into a price discovery phase for a new peak.
Bitcoin has realized a 113% year-to-date (YTD) gain from $43,607 to $90,552.10 per MarketWatch data. In contrast, XRP has climbed 33% over the same period. Meanwhile, other altcoins, including Solana and Binance Coin (BNB), mirror Bitcoin’s surge to realize 100% YTD gains.
The crypto data shows XRP’s yearly price of 28.9% is trailing 71 of the top-ranking crypto by market value. The disappointing outcome has seen several market watchers write off XRP, asserting that it lacks bull market potential. Nevertheless, core XRP proponents argue the crypto asset holds substantial promise for navigating unchartered territory.
A macro investor identified as Pharaoh indicated in an X update that XRP’s nature often frustrates holders with suppressed price action. Nonetheless, he considers this bull cycle unique as the XRP appears likely to shake off the pattern and blast past the ATH within weeks.
The encouraging comeback witnessed in XRP’s momentum draws parallels to the price action seen in 2017-18, when it rallied 1,523% to hit $3.84. XRP enthusiasts hope it will replicate history in the ongoing bull run for the ultimate comeback.