Market dynamics suggest potential growth for XRP, linked to the decline of the dollar index and new legislative initiatives in the U.S.
Historical Relation Between DXY and XRP
Versan Aljarrah, co-founder of Black Swan Capitalist, pointed out the relationship between the U.S. Dollar Index (DXY) movements and XRP’s price. He indicated that sharp declines in the DXY historically coincided with surges in XRP’s price. Notably, in early 2018, mid-2021, and late 2024, XRP experienced bull trends during significant DXY drops. In the current market cycle, DXY has fallen to 88, while XRP reached a peak of $3.80.
Market Optimism and Growth Forecasts
Aljarrah suggests that a continued decline in DXY could catalyze XRP price growth. Other analysts, such as Ali Martinez and CasiTrades, are also forecasting a possible rise in XRP to $6, based on technical analyses and Fibonacci levels. These signals have attracted investor interest in light of XRP’s recent technical movements and market positioning.
Legislative Developments and XRP ETF Prospects
Recent developments in U.S. legislation support a positive outlook for XRP. The House has advanced the GENIUS Act, which provides clearer frameworks for stablecoins. Following this, XRP temporarily surged above $3. Additionally, legal uncertainties have decreased as Ripple has fulfilled its financial obligations in the SEC lawsuit. SEC Commissioner Hester Peirce mentioned that current delays regarding an XRP ETF should not be viewed as rejections.
In summary, the combination of the dollar index decline, positive analyst forecasts, and legislative initiatives creates favorable conditions for potential XRP growth in the near future.
