Ripple (XRP) stands out as one of the few cryptocurrencies gaining momentum amidst the current market downturn. While most digital assets, including Bitcoin (BTC) and Ethereum (ETH), have faced losses, XRP price surged, driven by bullish sentiment and promising developments. This article explores how Ripple (XRP) defies the market trends, what is driving the XRP price rally, and a brief XRP price prediction on how long this momentum could last.
XRP Defies Market Trends: Why Is XRP Price UP?
While the broader cryptocurrency market turned red on September 30, 2024, Ripple (XRP) broke the pattern by registering a 10% increase, reaching a local top of $0.66 before settling around $0.64. This growth stands in stark contrast to losses experienced by major cryptocurrencies like Bitcoin, Ethereum, and meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB).
One of the primary factors behind this XRP price rally is the minting of RLUSD tokens, the upcoming Ripple stablecoin. In 24 hours, 800,000 RLUSD tokens were minted on Ethereum and the XRP Ledger (XRPL), accounting for 99% of the total supply. This move has fueled speculation that the Ripple stablecoin could have a positive long-term impact on the XRP price surge most likely, with analysts predicting that the RLUSD token may rally as high as $2.30 once the Ripple stablecoin officially launches later in 2024.
XRP Price Rally Leads To The Major Weekly Close in 2024
XRP price surge recently gained momentum by leading to its highest weekly close of 2024, positioning it as the sixth-largest cryptocurrency by market capitalization, overtaking Circle's USDC. On Sunday, XRP traded above the $0.64 mark on Binance, with a valuation of $36.8 billion. This performance marks a major victory for XRP bulls, striving to surpass the $0.60 resistance level for weeks.
This rise comes as the XRP price surge has even outperformed the other top 100 cryptocurrencies, standing shoulder-to-shoulder with surging meme coins. The asset's strength contrasts with a brief price surge following the final ruling in the Ripple case in August, which saw the price falter soon after.
Regulatory Risks: Will the SEC Spoil the XRP Price Rally?
Despite the XRP price rally recently, with all its bullish momentum, regulatory risks loom large. The U.S. Securities and Exchange Commission (SEC) could potentially derail this XRP price rally, with the deadline for the SEC's appeal in the Ripple case fast approaching on October 6, 2024. If the SEC chooses to appeal, the XRP price could face downward pressure. However, the appeal process is expected to be lengthy, with legal analysts suggesting a final ruling may not come until 2026.
XRP Price Prediction: Will XRP Price Rally Last?
The XRP price surge recently, amidst a bearish market, showcases the cryptocurrency’s resilience and growing potential. While its performance is buoyed by the excitement around the Ripple stablecoin RLUSD and technical breakout patterns, the looming threat of regulatory action could introduce volatility. Investors and traders should watch closely as developments unfold, particularly with the SEC’s upcoming decisions.
In the meantime, market sentiment remains positive, with some experts forecasting that the XRP price rally could continue if the regulatory challenges do not severely impact the market. With that, if the XRP price manages to keep trading over its major support level of $0.60, the higher will the chances to keep this rally longer be, however, if it breaks below this level, long-awaited to surpass, it might not be able to recover from easily after.
