Factors That Could Drive XRP to Reach New Record Highs, According to Santiment

Following the significant market downturn in the first quarter and early April, which caused widespread instability and sharp declines across the cryptocurrency sector, the mood has shifted as Bitcoin approaches the $100,000 threshold again.

Insights from Santiment indicate a transformation in market dynamics, significantly affecting altcoins that had previously struggled to regain footing. Currently, traders appear increasingly optimistic regarding multiple altcoins, such as Ripple’s XRP, which might be on the brink of a fresh surge that could push its price above $3, nearing its historic peak once more.

This sentiment is largely driven by speculation regarding the potential approval of Ripple ETFs in the United States. However, it’s important to note that cryptocurrencies often trend contrary to mainstream expectations.

XRP’s Potential New All-Time High?

Following the US elections, which generated considerable buzz in the crypto community due to anticipated positive changes in regulatory conditions, XRP emerged as a significant beneficiary, perhaps influenced by the excitement surrounding the expected resolution of the SEC legal case.

Between November and January, XRP’s value skyrocketed, climbing from $0.6 to $3.4. This rise brought Ripple’s token to its 2018 all-time high but ultimately fell short of surpassing it. Although Ripple’s CEO announced a settlement regarding the lawsuit, the consequent impact on XRP’s value was minimal. As it stands, XRP is trading just below the levels it held prior to Garlinghouse’s announcement in mid-March.

As the effects of the lawsuit resolution begin to diminish, the focus within the community has shifted to another potential catalyst for growth: a Ripple ETF in the US. Following the approval of futures-based XRP ETFs earlier this year, expectations are building for a spot ETF to be approved soon, with some experts suggesting this could happen as early as summer.

According to Santiment’s analysis, this sentiment is corroborated, even though the SEC postponed its decision regarding Franklin Templeton’s spot ETF proposal.

“…the delay has not dampened investor enthusiasm. Many believe that once approved, these ETFs could attract significant institutional capital and elevate XRP into mainstream finance.”

Optimistic Projections Persist

While recent reports indicate that conversations surrounding XRP have diminished in comparison to other leading altcoins, it has been observed that bullish sentiments are becoming more pronounced relative to bearish ones.

The Santiment team noted that a majority within the community advocates a bullish outlook, particularly from a technical standpoint.

“As interest grows and visibility expands, many in the crypto community perceive XRP as being on the verge of a significant breakout,” the report concluded.