Rapid Increase in XRP Price: Understanding the Cause
In the dynamic world of cryptocurrencies, XRP, the Ripple-linked token, has seen a significant surge in its value. As of now, XRP is trading at $2.86, marking a recovery from its recent lows.
The price spike can be attributed to a large buy order that absorbed significant sell liquidity, pushing the token to an intraday high of $2.91. This buy order, worth over $3 million, was recorded on Binance perpetual futures and was executed in a mere 100 milliseconds.
The strong demand for XRP seems to have originated from South Korea, where the trading volume has been robust. However, it's worth noting that the overall trading volume of XRP has recently decreased, which could be a bearish development.
The surge in XRP's price comes amidst anticipation for the approval of XRP Exchange Traded Funds (ETFs). Key issuers such as Franklin Templeton, Bitwise, and others have joined the XRP ETF race. The SEC (U.S. Securities and Exchange Commission) is widely expected to greenlight XRP ETFs in the fourth quarter of this year, according to experts and analysts in the crypto community.
If XRP ETFs outperform expectations in terms of inflows, it could create a powerful narrative for the token and potentially set the stage for a rally toward a new record high. However, delays and ongoing proceedings affecting XRP spot ETF approvals have been a concern. Notably, financial giants like BlackRock and Fidelity have remained on the sidelines regarding XRP ETFs.
As the crypto market eagerly awaits regulatory decisions, Ripple is gearing up for its high-profile Swell conference, scheduled to take place in early November. The conference is expected to bring together industry leaders, policymakers, and innovators to discuss the future of payments and the role of blockchain technology.
It's important to note that the current price of XRP, as well as the expectation of XRP ETF approvals, were determined using data from CoinGecko. Ripple's token is currently down roughly 20% from its all-time peak of $3.65.
This news was originally reported by U.Today. Stay tuned for more updates as the cryptocurrency market continues to evolve.
