What’s going on with Ripple (XRP)?
XRP Hits $2.81, Reaches Highest Value in Six Years
XRP surged to $2.81 on Monday, marking its highest price in six years and securing its position as the third-largest cryptocurrency by market capitalization. Surpassing Tether (USDT) and Solana (SOL).
Although it’s still below its 2018 peak of $3.84, several key factors indicate that XRP, the cryptocurrency issued by Ripple, could soon surpass its all-time high.
Trump’s Victory Sparks Crypto Optimism
Donald Trump’s win in the U.S. presidential election on November 5 has undoubtedly played a major role in driving XRP’s momentum.
The Republican president-elect’s pro-crypto stance has reignited investor confidence, pushing the overall crypto market cap up by 42% to $3.5 trillion since the election. Ripple CEO Brad Garlinghouse even declared Trump will “make crypto great again.”
Garlinghouse’s optimism is well-founded. Since November 5, XRP’s price has quintupled, outpacing gains in Bitcoin, Ethereum, and Solana.
Trading Surge Powers XRP Rally
XRP’s recent price spike coincided with intense trading activity, particularly after Robinhood relisted the cryptocurrency last month. The platform had delisted XRP in 2020 following an SEC lawsuit accusing Ripple of violating securities laws. Although Ripple was fined $125 million earlier this year, Garlinghouse hailed the ruling as a win for the company.
Trading activity of so-called “Whales” has driven a price premium compared to retail-centric exchanges. Meanwhile, South Korean retail investors have also played a key role, with XRP trading volume on platforms like Upbit and Bithumb surpassing Bitcoin’s in the past 24 hours.
SEC Shake-Up Boosts Market Confidence
The resignation of SEC Chair Gary Gensler is another catalyst for XRP’s recent surge. Gensler, known for his hardline approach toward the crypto industry, is stepping down on January 20, aligning with Trump’s inauguration.
Gensler’s departure could signal an end to Ripple’s prolonged legal battle with the SEC, potentially unleashing further growth for XRP.
Altcoin Momentum and ETF Prospects
While Bitcoin has soared to nearly $100,000 following Trump’s victory, its market dominance has fallen from 60% to 53% over the past week. Historically, such declines in Bitcoin’s dominance during market rallies signal the onset of an “altcoin season,” where attention shifts to other cryptocurrencies like XRP, according to 10x Research.
Additionally, XRP could soon see its own exchange-traded funds (ETFs), following the success of Bitcoin and Ethereum ETFs this year. Ripple CEO Garlinghouse has called the approval of an XRP ETF “inevitable.”
Major players like Bitwise Asset Management, Canary Capital, 21Shares, and WisdomTree have already submitted filings for XRP spot ETFs. Analysts suggest that regulatory approval could significantly boost XRP’s price, especially if Trump appoints a pro-crypto SEC chair.
Please be aware that this content is for information and entertainment purposes only. It does not serve as investment advice, and previous performance is not an indicator of future performance. Investing in crypto involves risk of loss. Always do your own research.
