Key Takeaways
- XRP’s market capitalization surpassed $100 billion for the first time in over six years.
- XRP’s price surged due to market optimism following pro-crypto political developments.
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XRP’s market capitalization surpassed $100 billion on Friday, reaching its highest level since January 2018 and overtaking BNB to become the fifth-largest crypto asset by market value, according to CoinGecko data.
The token’s price jumped 18% to $1.8 in the last 24 hours, with weekly gains of 22%. XRP has gained 193% since the start of the year. The asset now trails only Bitcoin, Ethereum, Tether, and Solana, with SOL’s market cap at approximately $114 billion compared to XRP’s $101 billion.
XRP began its upward trend after Donald Trump won the presidency. Trump’s pro-crypto stance brings hope that the sector will thrive under his second term. This has instilled optimism among investors and led to a market-wide rally.
While Trump’s re-election positively impacts XRP, its biggest gains are mainly tied to SEC Chair Gary Gensler’s resignation.
The token broke above $1 for the first time since November 2021 after Gensler hinted at resignation, and subsequently surged 25% to $1.4 upon his official announcement.
Gensler’s resignation is seen as a potential turning point in Ripple’s legal situation. Experts believe that ongoing SEC cases against crypto companies, including Ripple, may be dismissed or settled.
Positive developments in the stablecoin roadmap, coupled with Ripple’s ongoing business expansion and increasing institutional adoption, are also fueling XRP’s price surge.
Asset managers like Bitwise and Canary Capital are actively pursuing SEC approval to launch XRP ETFs.
The blockchain company is expected to secure approval from the New York Department of Financial Services to launch its RLUSD stablecoin.
XRP’s bullish run faces potential short-term correction
If bulls continue to take charge, XRP could reach $1.90 or even $2. However, CryptoQuant community analyst Maartunn warns that the recent price increase is largely driven by leveraged trading, a factor that can lead to significant price swings. A similar event in the past resulted in a 17% correction.
🚨 $XRP is experiencing a Leverage-Driven Pump!
Open Interest is up 37% already—watch for volatility. The last similar event led to a -17% drawdown.
Stay sharp, manage risk accordingly.#XRP #Crypto #Ripple #Onchain #Futures pic.twitter.com/Femb2xQKDH
— Maartunn (@JA_Maartun) November 29, 2024
Plus, XRP’s Relative Strength Index (RSI) is currently sitting at 89. An RSI above 70 indicates overbought conditions, suggesting that the asset may be due for a pullback.
Yet, it’s important to note that the RSI can remain in overbought territory for extended periods during strong bullish trends without resulting in a price correction. Traders are advised to exercise caution and manage their risk, given the potential for volatility in the short term.
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