Crypto Outlook: XRP’s spectacular rise

Since our last report, the bullish momentum driving Bitcoin’s price appears to be taking a slight breather, with the coin’s price just shy of 100k per coin. Moreover, in alt-coin news, XRP has risen spectacularly since our last report.  In this report, we aim to shed light on the possible factors aiding the recent developments in XRP’s rise, the ECB’s progress report on the digital Euro and end our report with a technical analysis of Bitcoin’s daily chart given its status as a barometer for the overall crypto markets..  

Crypto: Overview Report

XRP frenzy as ETF listings begin

Since our last report, XRP has risen to above $2 per coin at the time of this report, marking a significant milestone in the coin’s price. In particular, according to Watcher Guru, Wisdom Tree has officially filed for an XRP ETF, which could further boost market optimism and could unlock further institutional funds being allocated to the coin, which in turn may aid its price.

Moreover,  21Shares  Canary en Bitwise have allegedly also filled applications for an XRP ETF, which could further boost the aforementioned market optimism for the coin. Furthermore, Bloomberg on the 20^th of November reported that the incoming Trump administration is considering the appointment of a “Crypto Czar”, further affirming the incoming administration’s perceived pro-crypto agenda, which may aid the crypto markets overall, including XRP. Lastly, Ripple CEO Brad Garlinghouse announced on his “X” account that 60 minutes interviewed him “about crypto, the push for regulatory clarity and how the industry banded together to advocate for pro-innovation candidates”.

In our view, the high profile interview and positive media reports surrounding Ripple, are solidifying the company’s and thus by association their “XRP coin”, as a key player in the crypto industry. In conclusion, it appears that market enthusiasm surrounding XRP has significantly risen in the past few weeks, spurred on by the ETF listings and in particular that of Wisdom Tree which may have opened the floodgates for traditional investors. As such, should the positive sentiment surrounding the coin be maintained, it may further aid the coin’s price.

ECB publishes progress report on digital Euro preparation phase

The ECB earlier on today, released its second progress report on the digital Euro preparation phase. The ECB states that “the aim of a digital euro is to bring value to consumers, merchants and intermediaries, while reducing Europe’s dependence on international card schemes and non-European digital payment wallet providers”.

Essentially steps are being taken to prepare the Eurozone for the gradual adoption of a digital Euro, although we should clarify that within the report the ECB states clearly that “The decision on whether to issue a digital euro will only be taken by the Governing Council once the European Union’s legislative framework has been adopted” and thus nothing should be taken for granted.

Nonetheless, the ECB’s decision to lay down the groundwork in preparation for a possible digital Euro may further boost optimism in the crypto industry, as an official decision could lead to inflows into the crypto market. However, the ECB’s framework states that in the second quarter of 2025 the bank will decide on the selection of providers that may aid in this transition and thus it may take a while for a substantial impact if there will be any, to be seen in the crypto markets.

Nonetheless, generally speaking, the shift towards a digital ecosystem may allow for an even greater adoption of the crypto industry by the traditional financial sector and thus could increase market optimism in the crypto markets as a whole.

Crypto Technical Analysis

BTC/USD Daily Chart

• Support: 91400 (S1), 85000 (S2), 76200 (S3) 
• Resistance: 99200 (R1), 105000 (R2), 110000 (R3)    

BTC/USD appears to be moving in an overall upward fashion but appears to have stabilized just below the astonishing 100k per coin figure. We opt for an overall bullish outlook for the coin’s price and supporting our case is the RSI indicator below our chart which currently registers a figure near 60, implying a strong bullish market sentiment.

Yet we would like to highlight, that despite the RSI indicator currently reading a figure of 60, it appears that the bulls may be taking a temporary breather as the aforementioned figure appears to be on the cusp of breaking below that 60 figure and entering the “50’s” territory which may imply an undecided market where neither the bulls nor the bears are in complete control of the coin’s price. Nonetheless, for our bullish outlook to continue, we would require a clear break above the 99200 (R1) all-time high resistance level, with the next possible target for the bulls being the 105000 (R2) possible resistance line.

On the flip side, for a sideways bias we would require the coin’s price to remain confined between the 91400 (S1) support line and the 99200 (R1) resistance level. Lastly, for a bearish outlook we would require a clear break below the 91400 (S1) support level with the next possible target for the bears being the 85000 (S2) support line.

Disclaimer:
This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

Risicowaarschuwing:

Crypto CFDs are an extremely high-risk, speculative investment and you may lose all your invested capital. Before trading, you need to ensure you fully understand the risks involved taking into consideration your level of experience and investment objectives. Seek independent advice, if necessary.

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