Key takeaways
- The market capitalization of XRP has surpassed $100 billion for the first time in over six years.
- XRP 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 data from CoinGecko.
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 is now behind Bitcoin, Ethereum, Tether, and Solana, with SOL’s market cap at around $114 billion, compared to XRP’s $101 billion.
XRP started its upward trend after Donald Trump won the presidency. Trump’s pro-crypto stance gives hope that the sector will prosper under his second term. This sparked optimism among investors and led to a market-wide recovery.
Although Trump’s re-election has a positive impact on XRP, its biggest gains are mainly related to the resignation of SEC Chairman Gary Gensler.
The token topped $1 for the first time since November 2021 after Gensler hinted at his resignation, then 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 pending SEC cases against crypto companies, including Ripple, could be dismissed or settled.
Positive developments in the stablecoin roadmap, coupled with Ripple’s continued business expansion and growing institutional adoption, are also fueling the XRP price surge.
Asset managers like Bitwise and Canary Capital are actively seeking SEC approval to launch XRP ETFs.
The blockchain company is expected to gain approval from the New York Department of Financial Services to launch its stablecoin RLUSD.
XRP Uptrend 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 due to leveraged trading, a factor that can lead to significant price swings. A similar event in the past resulted in a 17% correction.
🚨 $XRP experienced a lever pump!
Open interest is already up 37% – watch the volatility. The last similar event resulted in a -17% decline.
Stay vigilant and manage risks accordingly.#XRP #Crypto #Ripple #Onchain #Futures pic.twitter.com/Femb2xQKDH
– Maartunn (@JA_Maartun) November 29, 2024
Additionally, XRP’s Relative Strength Index (RSI) currently sits at 89. An RSI above 70 indicates overbought conditions, suggesting that the asset may be due for a pullback.
However, it is important to note that the RSI can remain in overbought territory for extended periods during strong uptrends without causing a price correction. Traders are advised to exercise caution and manage their risk, given the potential for short-term volatility.
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