XRP, the token by Ripple Labs, a leader in digital payments and infrastructure, has reached heights not seen in three years, jumping over 80% in just a week to hit $1.06. But what’s behind this latest bullish charge?
KEY $XRP STATS 📈
— OCT Trades (@oct_trades) November 16, 2024
‣ Market cap hits $65 billion today
‣ Price solid above $1
‣ Bullish for 15/16 days in November
‣ 30% pump today after crossing $1, no selling
Retail might be knocking the doors soon.
This is a really good boost for Altcoins, potential #Altseason ahead pic.twitter.com/dst1vyq5Ru
What Caused the Coin's Explosive Growth?
U.S. Political Changing
The recent U.S. elections and Donald Trump's victory have injected a wave of optimism into the crypto market. Traders are betting that the new administration will take a friendlier stance toward cryptocurrencies. Trump has openly expressed his intention to oust Gary Gensler from his role as SEC Chair.
If Gensler steps down, Ripple, and by extension, XRP might finally have a clearer runway to regain market trust and expand its use cases. Many XRP traders are hoping this could soften the SEC's harsh stance in court regarding whether XRP should be classified as a security.
Futures Open Interest Surges
One of the biggest signals driving XRP’s price surge is the spike in open interest (OI) on the futures market. According to CoinGlass, OI for XRP futures has rocketed to near all-time highs, just shy of $2 billion.
This surge in OI suggests that traders are doubling down on bets for further upward movement in XRP's price, which drives volatility and the potential for big price swings.
Nick Forster, founder of DeFi on-chain options protocol Derive, commented:
The recent spike in XRP futures OI to record levels indicates rising trader interest — a classic sign of bullish market sentiment. Combine that with persistently positive funding rates, suggesting that new market participants could be taking advantage of trading opportunities in XRP.
Technical Signals for Growth
From a technical standpoint, XRP has broken through a long-term downtrend line, sparking renewed bullish sentiment among traders. Crypto technical analyst Mikybull Crypto shared a chart showing XRP’s breakout from a three-year downward trend, highlighting critical resistance levels at $0.85 and $1.10.
This $XRP breakout of the 3-yr downtrend means one thing
— Mikybull 🐂Crypto (@MikybullCrypto) November 14, 2024
Massive rally incoming pic.twitter.com/RUwFuPDVM2
The MACD (Moving Average Convergence Divergence) indicator has also flipped to a bullish crossover, indicating that the market could be gearing up for a fresh rally phase.
Potential Partnership and ETF Speculation
Gensler’s departure could also strengthen the outlook for a spot ETF for the asset. This has excited traders, especially after Bitwise’s earlier application for an XRP ETF.
Moreover, rumors are swirling that Ripple CEO Brad Garlinghouse could be advising Trump’s team on crypto policy, further stoking excitement.
Pratik Kala, a digital asset fund manager at Apollo Crypto, noted:
XRP’s rally seems driven by whispers that Garlinghouse may play a role in shaping crypto policy for the new administration.
The prospect of an XRP ETF and Ripple’s possible involvement in guiding U.S. crypto policy has added to the bullish sentiment.
How High Can XRP Go?
Crypto analyst Egrag Crypto believes that a crypto-friendly and transparent regulatory environment could catapult XRP’s price to around $11:
With unprecedented regulatory clarity, could we see a 40x or even 50x price increase?
#XRP – Under 40X? That’s Manipulation!:
— EGRAG CRYPTO (@egragcrypto) November 11, 2024
💯 In my honest opinion, if #XRP does anything less than 40X after missing the last cycle, it would feel like pure manipulation 🤯 and fall way short of expectations – price target aside! 📉
In the last cycle, despite the #SEC lawsuit,… pic.twitter.com/ZJoK2eGdQv
Given the positive regulatory shifts and growing speculative interest, XRP seems poised for further gains, potentially solidifying its position in the market for the long term.
Emmanuel Ekokotu
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