Ripple’s XRP rally is fueled by growing institutional interest as the Securities and Exchange Commission forms a cryptocurrency task force

- XRP maintained positive momentum after the SEC launched a cryptocurrency task force headed by Commissioner Hester Peirce.
- The launch of a cryptocurrency task force could help resolve the SEC’s case against Ripple and allow the approval of XRP ETFs.
- XRP could extend its massive uptrend to make a new all-time high above $3.55 as it develops a bull flag pattern.
The value of Ripple (XRP) rose 3% on Wednesday after the Securities and Exchange Commission (SEC) announced the formation of a new cryptocurrency task force. This task force is responsible for developing a more comprehensive framework for digital assets. In light of this announcement, asset managers began increasing their orders for the XRP exchange-traded fund (ETF).
XRP could receive regulatory clarification from the SEC’s Crypto Task Force.
With clearer cryptocurrency regulations on the way, the new SEC administration may be tempted to withdraw its case with Ripple. A notice from the SEC’s website revealed that a closed-door meeting with the new acting chairman will be held on Thursday.
Among the matters to be discussed are the resolution of litigation and matters relating to enforcement proceedings. As a result, the case against Ripple could take center stage at the meeting.
The court battle, which has lasted nearly four years under the Gary Gensler administration, could be dropped as part of new reforms to the agency’s regulatory oversight of the cryptocurrency industry.
Stuart Alderotti, Ripple’s chief legal officer, expressed his excitement at working with the SEC to create a clearer regulatory framework for cryptocurrencies under the leadership of Acting Chairman Mark Ueda.
“I look forward to working with the Crypto Task Force to undo the damage done by the previous administration,” he said in an X post on Tuesday.
Ripple executives are also trying to foster a close relationship with the Trump administration after having dinner with the president more than two weeks ago.
Likewise, the cryptocurrency community is highly anticipating a faster approval of XRP ETFs with the introduction of the Cryptocurrency Task Force.
There are currently eleven XRP ETFs from US asset managers, including ProShares, Bitwise, Canary Capital, WisdomTree, 21Shares, Rex/Osprey, and Teucrium.
Meanwhile, the XRP exchange reserve across the three largest exchanges, Binance, Bithumb, and Upbit, is trending lower. Investors have withdrawn more than 300 million XRP from these exchanges in the past two weeks to hold for the long term.
XRP Exchange Reserve (Upbit). Source: Cryptoquant
XRP eyes new all-time high as bull flag develops
XRP held $6.91 million worth of futures contracts over the past 24 hours, according to Coinglass data. The total value of the liquidated long and short positions is $4.38 million and $2.53 million, respectively.
The conversion-based token is forming a flag for a potential bullish flag pattern with its consolidation between the $2.90 and $3.38 range.
Prior to the most recent bull flag pattern, XRP had validated the bull flag when it rose above the bearish trend line resistance of the flag on January 11.
XRP/USDT 8-hour chart
Therefore, if XRP clears the upper boundary resistance of the new developing flag with a high-volume move, it will signal a continuation of the massive uptrend dating back to November. Such a move could help XRP achieve a new all-time high above $3.55.
On the downside, XRP could find support at $2.90 if it sees rejection at the flag’s upper border resistance.
Closing the daily candlestick below $2.33 will invalidate the bullish thesis.