XRP prices surged sharply at the beginning of the week, continuing a growth trend that began in late June. Key factors contributing to this include new legislative initiatives and increasing investor interest.
Impact of the GENIUS Act on XRP
XRP price increased to $3.55, over 120% rise since hitting a low in April. The auction was spurred by the new legislative initiative - the GENIUS Act, signed by Donald Trump. This law benefits XRP, as Ripple Labs launched the RLUSD stablecoin last December. RLUSD meets all the requirements set forth in the GENIUS Act and continues to gain market share, with a market capitalization exceeding $520 million, approaching PayPal’s PYUSD.
Growing Investor Interest
XRP prices also rose against the backdrop of increasing retail and institutional investor interest. Data shows that the Teucrium 2x XRP ETF continues to add assets three months after its launch, with assets under management nearing $500 million. The increase in assets in crypto funds indicates Wall Street investors' readiness for altcoin funds. It is likely that inflows into XRP-based ETFs will be substantial once approved by the Securities and Exchange Commission.
Technical Analysis of XRP Prices
According to technical analysis, XRP price has demonstrated a strong recovery this year, rising from $1.61 in April to $3.54 currently. Technical indicators show the token remains above the 50-day and 200-day exponential moving averages. A cup-and-handle pattern is forming on the chart, with the lower side at $1.61 and the upper at $3.40, suggesting a target price of $5.2.
The rise in XRP's price, linked to new legislative initiatives and high investor interest, indicates positive prospects for the token in the future. However, potential corrections are still possible if the price drops below the support level of $3.
