Trump's Word Revives Investor Sentiment, Has XRP Fired the Starting Gun for a Major Bull Run?

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As geopolitical tensions in the Middle East show dramatic signs of easing, XRP (Ripple), which had been mired in a slump, has soared to $1.37, firing a strong rebound signal, bolstered by favorable macroeconomic conditions and a recovery in exchange liquidity.

According to investment media FXEmpire on April 14 (local time), as U.S. President Donald Trump opened the door to potential peace talks with Iran, easing Middle East risks, risk asset preference exploded. XRP surged nearly 4% in the last 24 hours, reaching $1.37. The market is shaking off anxieties about a blockade of the Strait of Hormuz and betting on the ultimate securing of safer maritime shipping routes.

This counterattack by risk assets is supported by a solid macroeconomic backdrop of falling international oil prices and a weakening dollar. Brent crude, with inflation concerns eased, fell 0.9% to $98.44 per barrel, and as the dollar weakened against major currencies, global stock markets, including the MSCI World Index, all showed an upward trend, adding momentum to the crypto rally.

Liquidity indicators within the crypto asset market are also showing noticeable improvement. According to blockchain data analysis platform CryptoQuant, the ERC-20 stablecoin holdings on global crypto exchange Binance have surged by approximately $5 billion from their low, surpassing $46.3 billion, marking the highest level since early February. The inflow of new liquidity linked to fiat currency means that investors are loading up substantial ammunition to buy altcoins, including XRP.

Of course, XRP's own trading vitality still remains low. The XRP liquidity index on Binance plummeted to 0.053, its lowest since 2021, and 30-day trading volume also shrank to 3.77 billion units. This suggests that investors are extremely cautious, awaiting a clear upward catalyst. However, it is noteworthy that historically, explosive price breakouts have occurred after such periods of dried-up liquidity, followed by a recovery in trading volume.

Most encouraging is the steadfast confidence of high-net-worth individuals. According to Glassnode data, long-term XRP holders have consistently accumulated 200 million to 300 million units each month since January this year, even as the price underwent difficult adjustments around $1.30. Unlike the second half of last year, when selling at highs was prevalent, long-term investors are aggressively absorbing circulating supply by exploiting price weakness, which is expected to be a powerful driving force for a future major bull market.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*