XRP Surges After Ripple Secures European Regulatory Win

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Note: This is an AI generated insight from Arkham's proprietary AI: ULTRA. The content has been edited and verified by one of Arkham’s Editors before being published. To access the insight directly, go to the Insights page on the Arkham Intel Platform.

XRP Surges on European Regulatory Win and Bullish Market Sentiment

XRP has secured a major regulatory milestone, fueling a significant price surge and bullish sentiment in the crypto market. The cryptocurrency has successfully obtained an e-money license in Luxembourg, a crucial development that will allow it to leverage MiCA passporting for broader operations across the European Union. This news, confirmed by multiple outlets, is a key driver behind recent positive market trends and part of a larger strategy for XRP to expand its European footprint after a year of significant regulatory progress and institutional adoption.

Market Responds with Strong Price Surge

Following the news of XRP’s regulatory approval, the asset’s price experienced an immediate surge, moving from approximately $2.05 on January 13th to a high of $2.18 on January 14th. This positive action is a direct response to the regulatory breakthrough. 

The market’s bullish sentiment is further evidenced by a positive funding rate outlier on the XRP perpetual contract on Deribit, indicating that long positions are actively paying short positions, reflecting a strong bias towards longing XRP in the short term.

Futures Market Reflects Short-Term Optimism

The futures market is also mirroring this sentiment, with the futures curve showing an inversion, where shorter-dated futures are exhibiting a higher basis than longer-dated ones. Specifically, the XRP futures are trading at a discount. 

This structure suggests that market participants are more bullish on XRP’s immediate prospects, likely driven by the anticipated impact of the new e-money license, while maintaining a more cautious or uncertain outlook for the longer term.