Ethereum ETF Approval Raises Hopes for XRP, Solana, and Dogecoin
The recent approval of spot Ethereum (ETH) exchange-traded funds (ETFs) in the United States has raised hopes for a similar product for other digital assets such as Ripple Labs-backed XRP, Solana (SOL), and Dogecoin (DOGE). The XRP community is optimistic about a favorable outcome in the ongoing Ripple vs SEC case, especially following the settlement deal between the agency and Do Kwon and Terraform Labs.
However, XRP seems to be losing its appeal among crypto investors as other blockchain projects gain traction in jurisdictions friendly to digital assets. Prior to the US SEC’s allegations against Ripple for selling unregistered securities, XRP was among the top three most valuable cryptocurrencies.
As of now, XRP has slipped to the seventh position in terms of market capitalization, with approximately $29 billion and a daily average trading volume of around $1.1 billion.
Morganβs View on XRP Performance
Bill Morgan, a well-known Ripple enthusiast, conducted an analysis of XRP’s performance. Despite legal clarity over the past year, the cross-border-focused digital asset has struggled. Last year, US Judge Analisa Torres determined that XRP sales on exchanges did not create a binding agreement and therefore did not classify as a security.
However, Ripple may still be found culpable for violating securities regulations in its dealings with institutional investors. The company’s executives have discussed a potential settlement with the SEC following the agency’s proposal of a $2 billion penalty.
According to Morgan’s analysis, XRP’s price has been outperformed by 88 of the top 100 cryptocurrencies over the past year. The value of XRP against Bitcoin has declined by almost 84% in the last six months.
Midterm Expectations
Despite the evident decline, XRP’s price has been consolidating around the macro apex of a triangular pattern, often indicative of an upcoming bullish breakout. To trigger bullish momentum, XRP’s price against the US dollar must reclaim the 200-weekly moving average (MA) as a vital support level.
From a technical perspective, XRP’s price is targeting 61 cents, aligning with the daily 1.618 Fibonacci extension if buyers successfully defend the support level above 50 cents.
Hot Take: Will XRP Make a Comeback?
As the Ripple vs SEC case unfolds and XRP’s price continues to fluctuate, the future of this digital asset remains uncertain. With regulatory challenges and stiff competition from other blockchain projects, XRP faces an uphill battle to reclaim its former glory.
While there is optimism within the XRP community regarding a favorable outcome in the legal proceedings, the overall sentiment towards XRP among investors seems to be wavering. It remains to be seen whether XRP can overcome these obstacles and make a significant comeback in the crypto market.
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