- The current bullish rally has seen XRP surge to a six-month high of $0.83, driven by favorable court rulings for Ripple and speculation about SEC Chair Gary Gensler’s potential resignation.
- Additionally, whale activity and reduced token supply on exchanges have contributed to the upward price pressure.
XRP has experienced a significant price rally, surging by almost 20% within 24 hours reaching a six-month high of $0.83. This price surge is a manifestation of a notable shift in sentiment which has been driven by several factors.
Amongst the top factors is the potential development in the regulatory landscape. Additionally, there has been heightened optimism surrounding potential changes in leadership at the U.S. Securities and Exchange Commission.
The Resignation speculation of the SEC Chair Gary Gensler has catapulted investor hopes to new heights, especially in the crypto market. Many renowned figures in the crypto industry have viewed Gary Gensler as an adversary of the digital asset industry due to his aggressive regulatory stance.
The recent U.S. election where Donald Trump took the win home has contributed to speculations about Gary’s exit which has raised anticipation of a more balanced and crypto-friendly regulatory approach under new management. This possibility has injected fresh enthusiasm into XRP, with many seeing it as a harbinger of reduced regulatory hurdles for Ripple and its native token.
Additionally, the price rally coincides with a favorable court ruling for Ripple in its ongoing lawsuit with the SEC. Recently, a U.S. SEC granted Ripple and the CEO Brad Garlinghouse a judgment that included stay-on-class claims filed against them. Notably, this is not the first victory Ripple has been handed over by the U.S. courts.
Ripple’s win in this phase of the litigation has lifted market sentiment, signifying the weakening of the SEC’s arguments against XRP as an unregistered security. The court’s decision effectively supports Ripple’s claim that XRP transactions on secondary markets do not qualify as securities offerings, a stance that could further boost XRP price gains.
On the other end, the rally has also been supported by notable whale movements. Recently, 105 million XRP tokens, worth approximately $76.5 million, were transferred from Binance to an unidentified wallet. Such kind of huge transactions are often likened to the accumulation by institutions.
Additionally, the shift of XRP tokens from exchanges to private wallets reduces the token’s availability for trading. Therefore, adamant to the supply and demand market theory results to upward pressure on XRP’s price.
At the time of press, XRP is changing wallets with $0.8269 rallying 15.59% and 48.79% in the past 24 hours and past week respectively. On a broader scale, the XRP token has surged 50.71% surge in the past month. Additionally, Ripple’s XRP market cap has seen an uptick of 14.24% stopping at $46.77B.
Analysts predict that XRP could break out from a 40-month symmetrical triangle, potentially pushing the token’s value to $1.50 in the coming weeks.
