Ripple XRP Price soars to third-largest crypto in a $100 billion rally after Trump’s victor. The Ripple XRP Price went parabolic in November, making it one of the best-performing cryptocurrencies.
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Ripple XRP Price
The token rose as much as 32% on Monday to $2.87. In the process its market capitalization topped $154.6 billion, up from less than $30 billion on Nov. 5, when Donald Trump emerged victorious in the US presidential election, according to CoinGecko data.
The primary catalyst for XRP’s surge was Donald Trump’s election victory, which is expected to pave the way for more favorable crypto regulations. This development is significant as Ripple Labs has been embroiled in a legal battle with the Securities and Exchange Commission since 2020.
The latest Ripple XRP Price spike was driven by continued overseas buying, primarily in South Korea, as well as short liquidations on futures exchanges, according to Edward Chin, co-founder of Parataxis Capital. About $60 million in XRP short positions were liquidated in the last 24 hours, which was more than short liquidations for Bitcoin and Ether combined.
“The move seems to be entirely retail driven as nothing has fundamentally changed for XRP itself,” Chin said. “The move looks to be excessive given XRP is now a top-three digital asset, but that doesn’t mean that it can’t continue given the reflexivity in this market.”
The latest price move continues to build on the momentum from Trump’s win, which sparked a wave of speculative enthusiasm across crypto markets, with the President-elect expected to make good on pledges to nurture a favorable landscape for digital-asset firms in the US. Even against that backdrop, XRP’s rally is striking: in recent weeks its market value has surpassed that of rivals Solana and USDT, Tether’s stablecoin, the CoinGecko data show.
Ripple Labs was sued in 2020 by the US Securities and Exchange Commission, which claimed the San Francisco-based company broke the law when it raised money by selling XRP without registering it as a security.
The election also raised the possibility of a spot XRP exchange-traded fund by 2025. Earlier this week, asset manager WisdomTree, overseeing $111 billion in assets, filed for a spot Ripple ETF.
Crypto analysts suggest that XRP’s recent rally was largely driven by whale activity, triggering a fear of missing out among retail investors.
In an X post, CryptoQuant CEO Ki Young Ju highlighted that whale activity on Coinbase played a significant role, as exchange premiums surged to 3%-13%. Conversely, South Korea’s Upbit exchange, which has a substantial XRP trading base, showed no such premium.
Ripple XRP Price could suffer a mean reversion
Ripple’s price may face a potential pullback in the coming weeks. First, the coin could experience mean reversion, as it currently trades significantly above its short- and long-term moving averages. Mean reversion suggests that assets often return to their average price over time.
Additionally, XRP’s Relative Strength Index and Stochastic Oscillator indicate overbought conditions, signaling potential weakness. Furthermore, XRP may be in the markup phase of the Wyckoff Method, characterized by high demand outpacing supply.
This phase is often followed by the distribution phase, which typically leads to a sell-off. Ripple’s price could retreat to retest support at $1.9697, a key level last seen in April 2021.
The crypto market has gained about $1.2 trillion in market value since Trump’s election victory, CoinGecko data show.
Market leader Bitcoin, which last month came close to $100,000 for the first time, traded at $95,760. Ether, the second largest token, changed hands at $3,613.
News Credit – Hindustan Times and Crypto News
