What is behind the upward movement in XRP?

One of the leading altcoins in the Crypto market, XRP has pleased its investors with a rise of up to 9% recorded in the last week. So, what is the reason behind the recent volatility in XRP's price?

According to Glassnode data, the number of new addresses holding XRP rose to 3,677 on April 28, the highest level in the last two weeks. In addition to this data, which could indicate both new capital and new investor inflow, there is another promising metric in question.

Long-term XRP holders did not take a sell position

The "vitality metric" measuring the mobility of long-term XRP holders indicates that selling pressure has decreased. According to this metric, the mobility of addresses holding XRP for more than 155 days has dropped to 0.81. Based on the assumption that investors who do not move their XRP will not transition to a selling position, this metric is often interpreted as a sign of increasing confidence among investors.

The Rising ETF Excitement of XRP

On the other hand, another factor triggering the upward movement of XRP price is the developments on the exchange-traded funds that will allow institutional investors to purchase XRP without any cryptocurrency exchange (ETF). Indeed, it is known that many major companies currently issuing spot Bitcoin ETFs are knocking on the door of the (SEC) for XRP.

There are also new developments regarding the launch of XRP as an ETF. According to the application made to the SEC by the ETF issuer company ProShares, XRP's leveraged products of up to 2x will meet with investors in the traditional market. Among the new products given the green light by the SEC are Ultra XRP ETF, Short XRP ETF, and Ultra Short XRP ETF. These products are expected to be launched this week.

"Spot ETFs will attract between 4 to 8 billion dollars"

With the opening of leveraged XRP ETF products, the expectation for the approval of spot ETFs has naturally increased recently. Indeed, banking giant JPMorgan stated in a market note shared last January that it expects spot XRP to see an influx of between 4 to 8 billion dollars through ETF products.

On the other hand, the optimistic environment surrounding XRP is not just limited to ETFs. As is known, on March 19, Ripple Labs CEO Brad Garlinghouse officially announced that the SEC had dropped the lawsuit it filed against Ripple in 2020. This four-year legal battle was at the center of the discussions about whether XRP is a security.

Surpassed Ethereum in Japan

Another noteworthy development regarding XRP has come from Japan. According to SBI Group, one of Japan's leading crypto exchanges, XRP surpassed Ethereum in trading volume last month. The data shared by the exchange indicates that XRP was the second most traded cryptocurrency last month, right after Bitcoin.

The company behind the XRP crypto coin, Ripple, had announced that it would acquire the multi-asset prime broker Hidden Road for 1.25 billion dollars. This strategic move is one of the biggest steps Ripple has taken in line with its corporate expansion goals. With this agreement, Ripple will become the only crypto company that owns and operates a global multi-asset prime broker.

This article does not contain investment advice or recommendations. Every investment and trading move carries risk, and readers should conduct their own research when making decisions.