Ripple's XRP quest for $1.96 strengthened by WisdomTree XRP ETF registration in the US
- Ripple's XRP surged over 7% after WisdomTree registered for XRP ETF in the US, per Eleanor Terret.
- The company recently launched a low-cost XRP ETP in Europe.
- XRP could rally toward its April 2021 resistance of $1.96 following open interest growth.
Ripple's XRP surged over 7% on Monday and aims to stage a rally toward its April 2021 high after WisdomTree registered for an XRP ETF in the US state of Delaware on Monday.
WisdomTree registers XRP ETF as issuers expect lenient regulation with Gensler gone
Global asset manager WisdomTree, with over $113 billion assets under management (AUM), registered for an XRP ETF in the US state of Delaware on Monday, according to Fox Business Eleanor Terret. With the registration confirmed, the company could file an S-1 with the Securities & Exchange Commission (SEC) soon.
The company recently launched its WisdomTree Physical XRP ETP (XRPW) in Europe, offering investors direct spot price exposure.
WisdomTree's filing now places it alongside Bitwise, 21Shares, Canary Capital and Grayscale, who have all shown interest in an XRP ETF.
The increased optimism surrounding XRP follows Donald Trump's upcoming return to the White House as US president and SEC Chair Gary Gensler's decision to retire from the agency on January 20. Most investors anticipate that Trump will appoint a new Chair who will be more lenient towards cryptocurrencies, considering his campaign promises to provide positive crypto regulations.
Meanwhile, Ripple also announced the launch of a tokenized money market fund on the XRP Ledger through a partnership with UK digital asset exchange Archax and asset manager abrdn plc.
"The fund comprises part of abrdn's £3.8 billion US dollar Liquidity Fund (Lux) fund and represents the first tokenised money market fund on the XRPL," Archax wrote in a press release.
XRP maintains momentum for rally to $1.96
XRP is up 7% after sustaining over $24 million in liquidations in the past 24 hours, per Coinglass data. Liquidated long and short positions accounted for $15.64 million and $8.49 million, respectively.
XRP maintained its rounded bottom move over the weekend and is looking to stage a move toward its April 2021 resistance of $1.96.
XRP/USDT weekly chart
The bullish outlook is strengthened by XRP's open interest, which surged to an all-time high of $2.68 billion over the weekend before a slight correction to $2.25 billion on Monday.
The Relative Strength Index (RSI) is in the overbought region and indicates prices are getting overheated.
A daily candlestick close below $1.35 will invalidate the bullish thesis and send XRP to collect liquidity at the $0.93 support level.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addition to
