XRP Surges 14.28% as Regulatory Shifts Fuel ETF Hopes

Recent regulatory developments have sparked renewed interest and optimism among investors and analysts regarding the future price movement of XRP. The anticipation surrounding a potential XRP ETF approval is gaining traction, as recent regulatory changes signal a more favorable environment for the cryptocurrency. A COINOTAG analyst remarked that the current regulatory climate suggests a pivotal shift for XRP, potentially leading to significant market movement.

Key developments shaping the XRP market in the second quarter include growing optimism surrounding regulatory clarity and the potential for an XRP-focused ETF. On 9 April, the U.S. Senate confirmed President Trump’s nomination of Paul Atkins as SEC Chair. Atkins is widely perceived as crypto-friendly, increasing the likelihood of regulatory de-escalation. Adding fuel to the narrative, the SEC and Ripple jointly filed to suspend the ongoing appeal, pushing Ripple’s ‘reply’ deadline beyond 16 April. Consequently, market analysts believe the SEC may be delaying action until Atkins is formally sworn in, potentially paving the way for a 3–1 vote in favor of withdrawing the appeal.

The market response was immediate. Following the XRP news, the altcoin surged a staggering 14.28% in a single day, pushing XRP above $2 after three consecutive days of downward pressure. Despite trading more than 30% below its post-election peak of $3.30, these recent developments could significantly reshape the altcoin’s valuation outlook for the second quarter.

In the wake of the XRP news-driven catalyst, Open Interest (OI) surged from $2.87 billion to $3.26 billion, signaling a sharp hike in leveraged participation. On Binance, long positions made up nearly 70% of the XRP/USDT perpetual market, highlighting a strong directional bias towards further upside. Moreover, short-term holders (STHs < 155 days) exited the prolonged capitulation phase they had entered following the drop to $1.60. This cohort appeared to have strategically offloaded positions to lock in profits from XRP’s January rally, which peaked near $3.30.

The number of addresses holding more than 10,000 XRP surged to an all-time high, nearing the historic 300k-mark. This cohort now represents approximately 4.28% of all XRP addresses – indicating a growing concentration of high-stake holders and possible institutional confidence building under the surface. This is precisely where Exchange-Traded Funds (ETFs) enter the conversation. XRP-related ETF speculation is heating up, especially in the wake of the pro-crypto shift at the SEC. Combined with XRP’s growing institutional footprint, the case for an ETF has never looked more credible. Thus, short-term volatility, driven by weak-hand shakeouts, is to be expected. However, these underlying metrics will be key to ensuring that XRP can capitalize on the narrative shift and subsequently fuel a bullish Q2 trajectory.

In summary, XRP is navigating a crucial period marked by significant regulatory developments and increasing market sentiment favoring an ETF. This evolving landscape underscores the importance of continuing to monitor both price movements and fundamental shifts, as they will be pivotal in determining XRP’s trajectory in the coming months.