Ripple has been a focal point in the cryptocurrency space recently, driven by a series of significant developments within its ecosystem.
The native token, XRP, is experiencing positive movement today, November 27th, though its gains are more modest compared to other leading digital assets like Bitcoin (BTC) and Ethereum (ETH).
The ETF Craze
Mid-November marked a historic moment when Canary Capital became the first company to introduce a spot XRP ETF with 100% exposure to the asset. The product's launch day proved to be a considerable success, generating nearly $60 million in trading volume.
Following this, the US Securities and Exchange Commission (SEC) approved a similar financial product issued by Bitwise, which also demonstrated strong performance. Earlier this week, Grayscale and Franklin Templeton joined the growing list of major players entering the spot XRP ETF market.
Current data indicates that cumulative net inflows into these XRP ETF products have surpassed $640 million since the first one debuted a couple of weeks ago.
Investors are anticipating the launch of additional exchange-traded funds featuring Ripple's cross-border token as the underlying asset. The ETF issued by 21Shares is expected to be the next to go live, reportedly approved and slated for launch on November 29th.
RLUSD's Advancement
Less than a year ago, Ripple unveiled a stablecoin pegged 1:1 with the US dollar, named RLUSD. This product has been widely adopted by numerous exchanges in the subsequent months and has garnered support from prominent financial institutions, including BNY Mellon, the oldest bank in the US.
Recently, Ripple announced that Abu Dhabi's Financial Services Regulatory Authority (FSRA) has officially recognized its stablecoin as an accepted fiat-referenced token. This recognition makes RLUSD eligible for use by authorized individuals licensed by the agency to conduct specific regulated activities.
“The FSRA’s recognition of RLUSD as a fiat-referenced token reinforces our commitment to regulatory compliance and trust – two non-negotiables when it comes to institutional finance.”
This development signifies Ripple's ongoing expansion into the Middle East. Earlier this year, the Dubai Financial Services Authority (DFSA) had already recognized the stablecoin as a crypto token within the Dubai International Financial Center (DIFC).
In parallel, RLUSD's market capitalization has recently surged past $1.25 billion, positioning it as the 83rd-largest cryptocurrency. While this is a significant achievement, it remains considerably behind the leading stablecoins in the market, USDT and USDC.
XRP Price Outlook
Ripple's native cryptocurrency has seen a modest 1% increase on a daily basis, trading at approximately $2.20, according to data from CoinGecko. This performance contrasts with the more substantial gains observed in BTC, ETH, and other prominent digital assets during the same period.
Despite this, many analysts suggest that XRP might be poised for a significant short-term rally. One notable analysis indicated that the price has rebounded from the lower boundary of a specific channel below $2, which could potentially lead to a price increase up to $2.60.
However, a recent sell-off by large holders, often referred to as whales, serves as a cautionary signal that another correction could be imminent. Reports indicate that substantial investors have offloaded nearly 1.5 billion XRP in the past month, with an additional 180 million tokens reportedly sold earlier this week.
This large-scale selling activity could potentially trigger a wave of selling among smaller investors, creating a sense of panic within the community. It also raises the possibility that these whales possess information not yet public, which might explain their recent trading behavior.