XRP just pulled off its biggest weekly rally in months, soaring nearly 80% off its April lows and climbing to a five-month high this past Friday. The explosive move comes as crypto markets roar back to life, driven by investor appetite for risk assets, fresh regulatory buzz, and Bitcoin’s record-breaking run.
On July 11, XRP surged as high as $2.9695, its strongest price since March 2. Several forces powered the rally, including:
- Bitcoin’s monster surge to an all-time high of $118,300
- Strong inflows into the new leveraged XRP exchange-traded fund (ETF)
- Renewed optimism following Ripple CEO Brad Garlinghouse’s appearance in Washington, D.C. ahead of discussions around the proposed CLARITY Act
The combination of these factors, along with bullish technical patterns like a breakout from a months-long triangle formation, has traders eyeing a potential run back to XRP’s year-to-date peak of $3.3930.
XXRP ETF Sees Hot Demand Despite High Fees
The newly launched Teucrium 2X Long Daily XRP ETF (XXRP) has been a magnet for investors. The fund’s assets have climbed to $248 million, logging inflows every week since it debuted in April. Daily trading volumes have also surged, reflecting heightened investor interest.
What makes these inflows even more impressive is the ETF’s hefty cost structure. Unlike most ETFs, which typically charge less than a 0.50% expense ratio, the XXRP fund carries a steep 1.89% fee. To put that in perspective, a $10,000 investment costs about $189 annually in fees.
Yet, investors seem undeterred because the fund offers twice the daily return of Ripple’s price moves. Over the past five days, for example, XRP’s price jumped 24%, while the XXRP ETF shot up by 51%.
Regulatory Buzz Adds Fuel to the Fire
XRP’s rally also got a boost from Garlinghouse’s presentation in Washington. Lawmakers there are discussing the proposed CLARITY Act, which could bring much-needed regulatory definition to the crypto world. The bill, set to be debated during the upcoming Crypto Week, seeks to clarify how oversight duties should be divided between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Investors see regulatory clarity as crucial for Ripple and XRP’s future, adding another layer of optimism to the token’s recent gains.
XRP Technicals Flash Bullish
On the charts, XRP has decisively broken out above the descending trendline that had capped prices since January, completing the upper edge of a long-term triangle pattern.
Other bullish indicators include:
- A bullish crossover between the 50-day and 100-day Exponential Moving Averages
- The Average Directional Index (ADX) rising to 25, signaling growing trend strength
Taken together, these signals suggest that XRP’s rally might have further room to run. Analysts are watching closely for a potential push toward the year-to-date high of $3.3930.
The Takeaway
XRP’s sharp rally is the latest sign that crypto markets are regaining serious momentum. Whether driven by institutional inflows, bullish technicals, or hopes for regulatory clarity, XRP is riding a wave of optimism one that could propel it back to its highs if the current trends continue.
