Why Ripple (XRP) Keeps Pumping: 3 Key Reasons and What’s Next

After plunging to a local low of $1.30 just several days ago, the popular cross-border token has reemerged with a notable recovery attempt that pushed it to a 25-day peak at just over $1.46 earlier today.

There seem to be several reasons behind this impressive revival, one of which is linked to the performance of the XRP ETFs.

Global Market Stability

Perhaps the biggest reason behind XRP’s increase, as well as the broader market’s recovery over the past 10 days, is linked to the ceasefire between the US and Iran announced last Tuesday. Most assets reacted with immediate price jumps, and less uncertainty is typically more beneficial to risk-on options such as XRP.

Although there’s no permanent peace deal reached yet, both sides are expected to continue the peace talks. Moreover, US President Donald Trump also announced a ceasefire between Lebanon and Israel and hinted that his country and Iran are ‘very close’ to a deal.

The war in Iran has been the main driver of market moves since it broke out on February 28, and a more permanent solution could reignite a broader market-wide rally if it occurs soon.

ETFs’ Return

Perhaps due to the uncertainty prompted by the war, investors gaining exposure to XRP through the ETFs started to withdraw funds from the products in March or, at best, showed little to no interest for many days.

However, this trend changed at the end of the previous week – shortly after the Iran/US ceasefire went into effect – and investors returned to the ETF table. Data from SoSoValue shows that the financial vehicles are on a five-day green streak – the best in a month and a half – in which they have attracted over $50 million in net inflows.

This evident change in their behavior is the second probable reason behind the asset’s recovery.

No Shorts

Popular analyst CW noted earlier today that there’s almost no selling pressure from a large number of short positions on XRP. Moreover, they added that the number of high-leverage longs is not significant either, which the analyst classified as a “very ideal situation.”