XRP News Today: XRP Surges 14% as Exchange Reserves Drop 8% Amid Regulatory Shifts

XRP, the cryptocurrency associated with Ripple, has shown signs of a potential turnaround after weeks of bearish price action. The cryptocurrency's performance over the weekend suggests that a bullish trend may be emerging, supported by several key observations.

One significant factor contributing to the bullish sentiment around XRP is the recent drop in its exchange reserves. Data from CryptoQuant revealed that XRP reserves on Binance decreased by over 5 billion XRP coins. This substantial withdrawal, amounting to approximately 8% of the total XRP supply, could have a notable impact on price movements. The withdrawal was reportedly in anticipation of a major announcement related to Ripple and XRP, which could further influence market dynamics.

XRP's price dipped to as low as $1.90 on Sunday, marking a 17% decline from its weekly high. However, the cryptocurrency has since recovered, trading at $2.18 at the time of reporting, representing a 14% increase from its low point. This recovery occurred after the price entered oversold territory on the 4-hour chart, although it was not yet oversold on the 1-day chart. The price also retested the 50% RSI level on the 1-week chart, indicating bullish divergence between the price and the RSI. This divergence, combined with the significant decline in XRP's exchange reserves on Binance, suggests that a major price movement for the asset may be imminent.

These developments come amidst major regulatory changes in the crypto market. The U.S. government has shifted its stance on cryptocurrencies, lifting a previous ban that prevented banks from offering crypto-related services. Federal Reserve Chairman Jerome Powell recently announced that banks can now engage in crypto-related activities, marking a significant milestone for the industry. This regulatory shift underscores the removal of bottlenecks that previously limited liquidity flows into crypto, potentially benefiting XRP and other cryptocurrencies.

Ripple has been actively forming partnerships with banks to enhance cross-border financial services. The recent regulatory changes may encourage more banks to adopt Ripple's services, further boosting XRP's potential. Additionally, there are rising expectations that XRP ETFs might be approved soon, which could drive demand for the cryptocurrency. However, Ripple-related address activity has been declining, with the number of active addresses on the XRP ledger dropping from over 20,000 to about 7,000 in the last 24 hours. This decline pulled address activity to the lowest levels observed in the last 6 months, potentially contradicting the recent wave of exchange outflows. The declining address activity might be due to decreasing DEX activity rather than demand on exchanges, suggesting that the overall demand for XRP remains robust.

In summary, XRP's recent price movements and regulatory developments suggest that the cryptocurrency could be on the verge of a major breakout above $3. The significant withdrawal of XRP from exchanges, combined with bullish technical indicators and favorable regulatory changes, points to a potential upward trend for the asset. However, the declining address activity on the XRP ledger warrants attention, as it could impact demand dynamics in the near future. Overall, the outlook for XRP remains cautiously optimistic, with several factors supporting a potential price breakout.