Ripple’s evolution takes a decisive turn as CEO reveals that the previous claim that XRP holdings are worth $11 billion is outdated. This statement comes as XRP trades at $2.45, with an 18% increase from the past week.
The token recently leapfrogged Tether to become the third-largest cryptocurrency by market cap, reaching $141 billion. Growing institutional adoption and a potential shift in SEC leadership have come as symbols of hope for XRP investors amidst regulatory turbulence.
Market Catalysts and Regulatory Shifts
Ripple’s valuation narrative has shifted dramatically as CEO Brad Garlinghouse addresses the market. The company’s previous $11 billion price tag, set during a $300 million share buyback in early 2024, no longer reflects its current position.
The CEO claimed that Ripple’s substantial XRP holdings were now worth over $100 billion. He also draws an interesting parallel with MicroStrategy, noting that while MicroStrategy trades at 3x its net asset value, Ripple trades at a discount in private markets despite its substantial crypto holdings.
However, the XRP price trajectory could come down to two major catalysts as we go further into 2025. The first is the SEC leadership change, as pro-crypto Paul Atkins is set to take the helm on 20th January. This transition could mean that the SEC will settle or dismiss the ongoing appeal by April.
Furthermore, Ripple could find more joy in Japan’s financial sector, where banks are preparing for the widespread adoption of XRP Ledger. This integration with the Interledger Protocol could significantly impact XRP’s market position, potentially boosting its market cap by $64 billion even with just a 1% adoption rate in Japan’s $6.372 trillion banking sector.
These developments, along with the potential for XRP-based ETFs, suggest a promising outlook for XRP’s value this year. Multiple firms, including WisdomTree and Bitwise, have already filed applications for XRP-focused exchange-traded funds, indicating a strong institutional appetite for regulated XRP investment vehicles.
XRP Technical Outlook
XRP’s chart reveals an intriguing battle between bulls and bears at the $2.34 level, where a descending trendline meets ascending support. The price action since early January has carved out a symmetrical triangle pattern on the hourly timeframe, with buyers defending the rising support while sellers maintain pressure from above.
The RSI oscillator sits at 51.61, showing neutral momentum in the current range. Supporting this view, the MACD indicator shows minimal divergence, with its histogram hovering near the zero line, suggesting a period of consolidation.
Volume analysis adds another layer of insight, as recent price movements show decreasing volatility within the triangle formation. The current structure points to a decisive move approaching, with the triangle tightening between $2.10 and $2.30. A break in either direction would warrant caution.
XRP/USD Trading Chart
The technical aspect complements the broader fundamental analysis, particularly regarding regulatory shifts and institutional developments. While volatility remains a constant, the prevailing chart formation presents an attractive risk-reward scenario for targets near $2.80, contingent on maintaining support above $2.35.
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