Quick overview
- Ripple (XRP) started the week positively with a 0.47% gain, trading at $1.14 amid a $2.19 trillion crypto market capitalization.
- The Fear & Greed Index improved to 28, indicating a more optimistic market sentiment for crypto investors.
- Lower chances of US Federal Reserve interest rate hikes and declining crude oil prices are supporting the crypto market.
- XRP spot ETFs have seen positive inflows for nine consecutive weeks, reflecting continued investor confidence despite broader market uncertainties.
Despite the stronger US dollar and ongoing uncertainties in the matter of the Strait of Hormuz, the Ripple (XRP) coin managed to start this new week on the bullish track and is showing small gains of 0.47 percent in the Asian trading session on Monday. At the time we are writing this article, the coin is trading at $1.14, showing mild bullish performance on the day.
On Monday, 6 July 2026, the crypto market has a 2.19 trillion dollar market capitalization, showing a 0.79 percent increase in the last 24 hours. In addition to the market capitalization, the Fear & Greed Index has improved to 28 from 17, which also shows that market sentiment is improving, which is absolutely good for the crypto investors.
However, the reason for modest bullish XRP performance can be attributed to the lower chances of a US Federal Reserve interest rate hike. Last week on Thursday, the US economy released weaker than expected job data, which forced traders to cut their bets for interest rate hikes. Therefore, this put some pressure on the US dollar and gave support to the crypto market.
Not only this, but the latest declines in crude oil prices further reduce the chances of interest rate hikes. This is positive for the crypto market as lower interest rates increase investor confidence, which ultimately boosts the demand for digital assets like XRP coin.
Iran Tensions Support the US Dollar
Despite the dovish Federal Reserve stance, the US dollar gained some traction on the first day of the new week. However, the reason for its latest gains can be attributed to the long lasting geopolitical tensions between Iran and the US. As per the latest reports, one of the worlds most important oil routes, the Strait of Hormuz, is still facing very high tensions. Despite a temporary agreement between Iran and the US, the issues have still not been resolved. Iran wants to maintain its control over this route, and in this regard, Irans ambassador to China stated on Saturday that Tehran will now impose new service fees on all ships passing through the strait. This route is highly strategic because nearly 20-30% of the world’s oil passes through it.
Meanwhile, the United States has clearly rejected this plan, which has increased geopolitical tension in the market. As a result of these tensions, the US dollar is gaining momentum at the beginning of the new week. During the Asian trading session, the US Dollar Index (DXY) is trading at 100.98. Hence, a stronger dollar is having a negative impact on the cryptocurrencies because investors are considering the dollar a safe haven and are investing in it.
At this time, the Strait of Hormuz is under Irans control, and thousands of tankers pass through it every day, making it important for the global energy supply. If these fees are imposed or if any blockage occurs, oil prices could rise sharply.
XRP ETFs Keep Growing Despite Market Uncertainty
On the other hand, the XRP spot ETFs have recorded positive net inflows for nine consecutive weeks. In fact, these ETFs received 17.19 million dollars this week. Despite the uncertainty in the broader crypto market, the XRP ETF managed to maintain its long positive net inflows streak, which clearly shows that large investors still have confidence in XRP and continue to invest in it.
In addition to the XRP ETFs, the major regulatory bill, the CLARITY Act, which was expected to introduce clearer and new rules for the cryptocurrency market, missed its expected timeline. The Senate went into recess without holding a vote. As a result, the positive news regarding new regulations has been delayed for now. Senators will return on July 13, and any development regarding this bill could become a major catalyst for coins like XRP.
According to Santiment data, XRP 30-day MVRV is around -45%, while its one-year MVRV stands at nearly -47%. This means that most investors bought XRP at higher prices and are still holding it at a loss. Despite this, the money continues to flow into XRP ETFs, which shows that some investors are investing with a long-term outlook.
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.
His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.
His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
Source: Original Article
