The XRP price has outperformed its peers among the top ten largest cryptocurrencies on the market, experiencing a significant surge of 13.5% in the past week alone after experiencing a sustained decline from its yearly high of $0.745 in March.
With an eye on a key Fibonacci level, the eighth largest cryptocurrency by market capitalization, currently valued at $26 billion, is poised for a potential price explosion that could send the XRP price to new yearly highs, coupled with a bullish announcement surrounding the token’s rise since Thursday.
XRP Becomes Bridge Asset In $1.2 Trillion Market
CoinGecko data shows a notable increase of 50% in trading volume over the past few days, demonstrating the renewed bullish sentiment surrounding the XRP price, along with a significant collaboration announcement with the world’s largest derivatives marketplace, CME Group, which has further strengthened XRP’s position in the market.
On Thursday, CME Group made a major announcement, revealing that starting July 29, the CME and XRP dollar reference rates and real-time indices will be included in its suite of benchmarks, positioning the token as a bridge asset in a market worth approximately $1.2 trillion.
The XRP price has benefited from this announcement, as transparent pricing information is likely to increase liquidity, making it easier for investors to buy and sell XRP tokens, resulting in the current price surge of 4% witnessed in the 24-hour time frame.
Additionally, this collaboration may open new doors for creating financial products, such as futures and options based on XRP, providing holders with additional ways to manage risks and maximize their investments.
Brad Garlinghouse, CEO of blockchain payments company Ripple, which is closely associated with XRP, expressed his enthusiasm for the collaboration, emphasizing the importance of having a trusted benchmark reference rate as a critical step in adopting institutional crypto products.
Garlinghouse praised the joint effort between CME Group and CFBenchmarks to create an XRP index, noting that the market has validated the need for such initiatives. Ripple’s CEO stated:
First step towards institutional crypto products is to have a trusted benchmark reference rate. Nice to see CME Group and CF Benchmarks collaborate on this for an XRP index. The market has spoken.
XRP Price Eyes $1.8
In addition to the news, technical analysis points to further upside for the XRP price if certain conditions are met. Crypto analyst Dark Defender recently noted in a social media post that XRP is testing the $0.462 Fibonacci level, which is key to the token’s prospects and expectations for the continuation of the uptrend.
The analyst also spotted two bullish divergences in the price and the Relative Strength Index (RSI) numbers as they made higher lows on the weekly XRP/USD chart.
This led Dark Defender to believe that if the XRP price breaks and consolidates above this level from today until Sunday, the cryptocurrency could begin a journey towards the $1.88 level, representing a 288% price increase from the current trading level of $0.465.
Featured image from DALL-E, chart from TradingView.com
