If this moment had to be illustrated, it could be said that XRP is a pressure cooker about to explode in the next few days or weeks.
Is that the cryptocurrency emitted by Ripple Labs is reaching the final phase of a bullish flaga technical analysis figure that, as indicated by its name, usually anticipates price increases. For that reason, the enthusiasm among investors awakens.
This figure combines an upward movement with a price compression stage, in which the maximum and minimums narrow to form the triangle. The rupture of the flag, usually, is with another ascending impulse.
After observing the signals that the technical analysis throws, the question that arises is: What is missing for this pressure cooker to be uncovered? The first thing is that improve the macroeconomic context that favors risk assetslike cryptocurrencies.
This is because financial speculators prefer a stable environment to perform their movements. If there are geopolitical tensions and economic uncertainty, most likely they decide to place their holdings in instruments, such as treasure bonds, which generate less yields but are not exposed to market volatility.
And the reality is that the situation globally does not accompany. As cryptootics reported, most digital assets were dyed red as a result of the tensions in the Middle East. The war conflict between Israel and Iran continues to climb, which generates uncertainty in the markets and slows the appetite for risk assets.
Likewise, we must not lose sight of the fact that the United States Federal Reserve (FED) decided yesterday, June 18, maintain the interest rate in 4.5% year -on -year, something that does not favor cryptocurrencies. When the rates remain high, the cost of indebtedness ups and also the performance of the treasure bonds, which reduces the attractiveness of investing in more volatile assets.
What’s still for XRP?
While the most important signal that XRP needs to take off is an improvement in the macroeconomic panorama, there are other factors that could also boost a rise in its price.
One of them is the possible launch of the Bolsa -listed funds (ETF) of XRP in the United States. As cryptootics has reported, firms such as Canary Capital, 21Shares, Bitwise, Grayscale, Franklin Templeton and Coinshares have submitted requests before the United States Stock Exchange and Securities Commission (SEC) to list these products.
At the moment, the agency that Paul Atkins currently does not approved (nor rejected) these requests.
The launch of XRP ETFs could increase asset exposure among more traditional investors, in addition to attracting more liquidity to the Ripple Labs ecosystem. However, it is worth clarifying that these products could Not having an immediate impact on the price of cryptocurrency.
An example of this is what happened with the ETFs based on Ether (eth), the native currency of Ethereum. Almost a year after its launch, these instruments have had a much lower performance compared to those of Bitcoin (BTC).
Another factor that could boost the price is the institutional adoption of XRP. Little by little, companies that incorporate XRP are seen in their corporate treasury. One of them is Vivopower, an energy company that lies in the Nasdaq index, which closed an agreement for a private placement of shares for $ 121 million to finance the creation of a strategic XRP reserve.
For its part, Trident, a technological company based in Singapore and quoted in Nasdaq, announced on June 12 a plan to raise up to 500 million dollars through convertible bonds. Of that total, a part will be destined to buy XRP.
If this trend begins to expand in the market, could generate bull pressure in the price of XRPin addition to strengthening your narrative as a long -term reserve asset.
Discharge of responsibility: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of cryptootics. The author’s opinion is informatively and under no circumstances constitutes an investment recommendation or financial advice.
