XRP is up by more than 3.5% over the last 24-hour period to now trade at $3.19 as the cryptocurrency recovers from a significant correction that came after the Chicago Mercantile Exchange (CME) denied it was listing futures tied to the cryptocurrency.
The price of the native token of the XRP Ledger could, according to popular cryptocurrency analyst, keep on rising to the $4.4 mark based on a key technical pattern, yet the cryptocurrency market has recently been seeing significant volatility.
Bitcoin’s price, for example, experienced substantial fluctuations within the past 24 hours in response to U.S. President Donald Trump’s executive order. This order seeks to create a more favorable regulatory framework for digital assets within the country. The administration has been tasked with developing policies that will establish a solid foundation for the sector, including the possibility of establishing a “digital asset stockpile.”
XRP’s recovery during the volatility is likely tied to its recent drawdown that came after it briefly saw its total market capitalization surpass that of Wall Street giant Goldman Sachs. Behind the drop was CME’s clarification on potential XRP futures on its platform.
The Chicago Mercantile Exchange (CME) is often seen as a barometer of institutional activity in the cryptocurrency space. Earlier screenshots of pages hinting at the potential launch of futures contracts for both XRP and SOL circulated on social media, fueling rumors that the launch would occur on February 10.
However, the exchange clarified that these were “beta pages” from its website that had been released in error. A spokesperson for the firm explained that mock-ups were included in its testing environment, and no decisions had been made regarding these futures contracts.
As with most cryptocurrencies, XRP experienced a surge in price late last year due to optimism about a more favorable regulatory environment under President-elect Donald Trump’s administration. Anticipated policy changes, such as the establishment of a strategic Bitcoin reserve and the appointment of Paul Atkins as the head of the Securities and Exchange Commission (SEC), have significantly boosted investor confidence.
It’s worth noting that Atkins is regarded as a crypto-friendly figure to lead the regulatory agency, which has been involved in a legal battle with Ripple, a prominent player in the XRP ecosystem. This legal dispute centers around Ripple’s XRP sales.
Trump’s pro-crypto stance has led many to speculate that XRP could soon launch a spot exchange-traded fund (ETF) that provides exposure to the cryptocurrency. Several companies, including Bitwise, Canary Capital, WisdomTree, and 21Shares, have already filed for spot XRP ETFs. Ripple’s CEO, Brad Garlinghouse, has expressed the belief that such a fund is “inevitable.”
Featured image via Pexels.
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