XRP is trading above $1.30 after 3 years.
Open interest exceeds $2 billion.
After three years, the XRP price is back above $1.30 and its ambition doesn’t stop there. Now, the cryptocurrency issued by Ripple Labs has a next goal on the horizon: passing the $2 barrier.
As CriptoNoticias already reported, the price rebound that the digital asset had allowed it to regain sixth position in the cryptocurrency ranking with higher market capitalization. In this way, it displaced dogecoin (DOGE) from that place.
As if that were not enough, there are enough reasons for optimism around the XRP bull cycle to remain strong. Mainly, because the open interest (OI) of the digital currency reached $2,000 trillion for the first time in its history.
Open interest is an important metric that provides valuable information such as market sentiment, trading activity, and liquidity. Additionally, it reflects the number of futures contracts currently in circulation.
This indicator grows when the number of new contracts, whether long positions (upward price bets) or short positions (downward price bets), exceeds that of closed contracts. An increase in OI reflects greater activity in the marketwhich can lead to an increase in liquidity and trading volume.
For this reason, every time the indicator rises, it is a sign of bullish enthusiasm among investors.
According to explorer data Coinglassthe Bybit exchange has the most open interest in XRP contracts with 34.38%. Further behind are Binance (28.25%) and then Bitget (22%).
At the time of publication of this note, the price of the digital currency is $1.47, as seen in the following chart. TradingView.
Clearly, XRP has “bull mode” active, and the big question is whether it will have enough momentum to close the gap with its all-time high (ATH) of $3.84reached in January 2018
The changing map of US politics could play a vital role in this issue.
XRP and Trump’s triumph
Donald Trump’s victory in the US presidential election generated bullish sentiment in the digital asset market. Throughout his campaign, the Republican leader expressed his explicit support for cryptocurrencies and promised to end the persecution of the head of the Securities and Exchange Commission (SEC), Gary Gensleragainst the main players in the sector.
Although Trump does not have the power to remove him, the official in charge of the regulatory entity announced that he will present his resignation on January 20, 2025.
During his tenure, Gensler filed lawsuits against exchanges such as Binance, Kraken and Coinbase, for trading a dozen digital assets that were considered by the SEC to be unregistered securities (securities)which prohibited its sales.
For its part, Ripple faced a lawsuit with the SEC for the marketing of XRP through exchanges. As reported by CriptoNoticias, the US Justice determined that the asset can only be considered a security in specific cases, such as institutional sales.
The ruling was not to the liking of the regulatory body, which filed the corresponding appeal. However, with Gensler’s departure, there are chances that the resolution will be in favor of Ripple Labs.
This is crucial for the next administration, with clearer regulation on which cryptocurrencies are considered securities, to approve applications to launch an XRP-based exchange-traded fund (ETF).
4 applications for an XRP ETF
There are currently four companies that have filed with the SEC to list an XRP-based exchange-traded fund (ETF).
Initially, the firms 21Shares, Canary Capital and Bitwise submitted the applications. In these documents, it is clarified that the digital asset is not a security and constitutes one more option to diversify the cryptocurrency investment portfolio.
As reported by CriptoNoticias, on November 25 WisdomTree joined the list of companies seeking to launch this financial product on the market. The company officially registered its own ETF, called WisdomTree XRP Fund, in the state of Delaware.
According to him report of Fox Business, the registration is legitimate and highlighted that WisdomTree has more than $100 billion in assets under managementwhich adds potential confidence to the cryptocurrency.
The approval of an XRP ETF could increase liquidity and facilitate traditional investors’ access to cryptocurrency.
As explained in Criptopedia, the educational section of CriptoNoticias, the good performance of ETFs directly impacts the price of the underlying asset, in this case XRP.
The thing is that due to their operation, the firms that manage them They must keep the asset in their treasuries to support the actions. By simple law of supply and demand, this causes its price to rise.
The possible meeting of the CEO of Ripple with Trump
Brad Garlinghouse, CEO of Ripple Labs, was one of the actors in the sector who most celebrated Trump’s victory over Kamala Harris. In an interview with the Fox News network, He assured that he was not surprised by the market response and said:
The cryptocurrency industry has embraced Trump and Trump has embraced the cryptocurrency industry. I think he’s very genuine, and I think he sees the opportunity, he sees the innovation, he sees the entrepreneurship – I’m very excited about what the future holds.
Brad Garlinghouse, CEO of Ripple Labs.
In this context, rumors also circulated about a meeting between Trump and Garlinghouse to outline the first initiatives to promote the development of cryptocurrency projects in that country.
Although there was still no type of confirmation about the meetingthe XRP community remains expectant and excited about the possibility of the firm’s CEO working alongside the new president of the United States. If this came to fruition, it would likely be bullish for the digital currency
