The crypto market is always full of surprises, with sudden changes and movements being the norm especially for XRP which has been affected by its ongoing lawsuit. Recently popular cryptocurrencies like Ethereum and XRP have shown signs of recovery. After a push from bullish investors, these altcoins started rising. However, today’s slight dip in Ethereum and XRP prices may cause concern. Despite this, there are strong signs that a major rally is still on the horizon and here’s why.
Ethereum and XRP Show Promise Despite Recent Slump
Ethereum has seen a 6% growth over the past week rising from around $2,200 to $2,550. XRP moved closer to $0.60 giving its holders hope for a full recovery. But today the XRP dropped 1% currently sitting at $0.582 making some wonder if this rally will be short-lived.
However, experts like Captain Faibik predict a massive breakout for XRP, thanks to a promising chart pattern. Beyond that there are five key reasons to believe in a continued surge for both Ethereum and XRP.
1. Federal Reserve Cuts Interest Rates
Like traditional markets the crypto market is influenced by macroeconomic factors like interest rates. Recently the Federal Reserve implemented a 0.50% interest rate cut the first in four years. This move is expected to boost liquidity making borrowing easier for investors.
With more money in the market investors often look for higher returns leading them to invest in cryptocurrencies like Ethereum and XRP. As liquidity grows these cryptos could see their prices increase further.
2. October’s “Uptober” Trend and Potential Bull Run
Historically, October has been a strong month for Bitcoin and the overall crypto market, often called “Uptober.” This month could once again bring gains for Bitcoin, Ethereum, XRP, and other major cryptocurrencies.
In the past 13 years, Bitcoin has shown positive growth in October, with only two exceptions (2014 and 2018). If Bitcoin follows this trend again, Ethereum and XRP are likely to benefit, as a rising tide lifts all boats in the crypto space.
3. Spot Ethereum ETF and Grayscale XRP Trust Fuel Investor Hype
The introduction of the Spot Ethereum ETF has generated excitement, as it offers investors a new way to invest in Ethereum. According to recent data, Ethereum ETF inflows were positive for two of the last five trading days, showing growing interest.
Similarly, Grayscale’s announcement to relaunch its XRP Trust, following the end of the Ripple lawsuit, has sparked hope for XRP. Robinhood, a popular crypto exchange, is also considering reintroducing XRP to its platform, which signals wider acceptance of the token.
4. Ripple’s Win Against the SEC
The long-standing lawsuit between Ripple and the SEC is finally coming to an end, with Ripple emerging victorious. The SEC has not filed an appeal, and Ripple’s fine was reduced by 94%, to $125 million. This victory is a huge relief for XRP, which saw its price drop 85% during the lawsuit. With the legal battle behind them, analysts predict XRP could see a surge, with some even speculating prices as high as $5, $20, or even $100 in the future.
5. Ethereum Price Boost from ETF Options
The SEC recently approved Bitcoin ETF options, allowing for the trading of Bitcoin ETFs under the IBIT ticker. This opens the door for Ethereum ETF options as well. Nasdaq has already requested SEC approval for Ethereum ETFs, and although approval may take time, experts predict it could happen by April 2025. Once approved, Ethereum ETF options would give investors more choices, likely increasing demand for Ethereum and driving up its price.
Although Ethereum and XRP have faced struggles in the market, both have strong potential for growth. Ethereum has maintained its position in the global market, with the recent introduction of a Spot Ethereum ETF giving it an edge. On the other hand, XRP is ready to rebound as Ripple’s legal troubles come to an end. Together, these factors suggest that the price rally for both Ethereum and XRP is far from over.
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