XRP’s recent price volatility has stirred conversations around its potential for investment, particularly after hitting a low of $2.5440 — a staggering drop of over 30% from its year-to-date high. However, it has recently rebounded to $2.5485, contrasting sharply with last Friday’s low of $1.7768. As these fluctuations occur, one must ask: Is XRP a good investment, especially as the XRPR ETF approaches a significant milestone of $100 million?
XRPR ETF Growth Is Accelerating
The REX-Osprey XRP ETF (XRPR), launched not long ago, is experiencing robust growth, boasting over $92 million in assets merely a month post-launch. This surge indicates a healthy appetite for XRP shares among institutional investors. Notably, the ETF has managed to attract funds despite a relatively high expense ratio of 0.75%—in contrast to the sub-0.25% ratios typically seen in most spot Bitcoin ETFs. This suggests a sustained demand for XRP among serious investors.
In addition, the Teucrium 2x XRP ETF (XXRP) has also seen significant inflows, now reaching over $355 million in assets under management. With such momentum, spot XRP ETFs backed by mainstream companies like Franklin Templeton, Invesco, and Bitwise may capture considerable interest if the U.S. Securities and Exchange Commission (SEC) approves them following an anticipated government shutdown.
Forecasts from analysts indicate an impressive potential for XRP ETFs, predicting billions in inflows. JPMorgan predicts these funds could generate over $8 billion in their inaugural year, a staggering amount that underscores the increasing institutional faith in XRP.
American investors have shown substantial interest in the cryptocurrency market. Since their inception, spot Bitcoin ETFs have attracted over $62.4 billion, while Ethereum funds have garnered more than $14.48 billion. This collective interest underscores the transformative potential of crypto-focused financial products in traditional markets, with Bitcoin and Ethereum holding more than $130 billion and $28.75 billion in assets, respectively.
XRP price chart | Source: TradingView
Other Catalysts for the Ripple Price
Beyond the excitement surrounding ETFs, other factors are currently driving XRP’s value. A vital player in this space is the Ripple USD (RLUSD) stablecoin, which recently crossed the $839 million in assets milestone—a significant achievement given its launch just last year. This stablecoin is actively utilized, boasting a daily trading volume of around $105 million, establishing its relevance in the market.
RLUSD’s growth is particularly noteworthy as some of its supply is integrated into the XRP Ledger network, bolstering the connection between XRP and stablecoin usage. Additionally, the passage of the GENIUS Act has drawn attention to the regulatory landscape, further propelling interest in XRP’s utility and applications.
Furthermore, Ripple’s engagement in the Real-World Asset (RWA) sector is expanding. It currently holds $361 million in total RWA assets, reflecting a growth rate of 3.39%. High-profile assets include VERT Capital, RLUSD, OpenEden Digital, Archax, Ondo, and Braza Crypto, showcasing Ripple’s diverse investment portfolio.
XRP Price Technical Analysis
XRP price chart | Source: TradingView
An analysis of XRP’s recent price action reveals a downward trend, having dropped from a high of $3.6650 to its current level of approximately $2.53. The price has recently dipped below both the 50-day and 200-day Exponential Moving Averages (EMA), indicative of bearish sentiment.
A notable formation in the price chart is a giant hammer candlestick—a potential bullish reversal pattern. Despite this, continuing the downward trend is plausible, with strong support at around $2. A move past the resistance level at $2.84, aligned with the 200-day moving average, might signal the end of the bearish outlook.
The dynamics surrounding XRP, from institutional interest in ETFs to the increasing traction of real-world applications, paint an intriguing picture of its potential future value and market position.
