The XRP price has been on a remarkable upward trend, witnessing a 20% increase over the past two days and an astounding 47% rise over the last five days. This surge can be attributed to several pivotal factors, including speculation about SEC Chairman Gary Gensler’s potential resignation, favorable regulatory conditions anticipated under the incoming Trump administration, heightened whale activity, and a significant technical breakout. Let’s delve into these factors in more detail.
Speculation About SEC Chairman Gary Gensler’s Resignation
One of the primary catalysts behind XRP’s recent price movement is the mounting speculation regarding the possible resignation of Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC). On November 14, Gensler addressed the Practicing Law Institute’s 56th annual conference on securities regulation, praising the SEC’s efforts. He stated, “It’s been a great honor to serve with them, doing the people’s work, and ensuring that our capital markets remain the best in the world.”
The speech has been interpreted by the crypto community as a potential farewell address, particularly in light of the upcoming transition following Donald Trump’s victory in the US presidential election. Investors are optimistic that the Trump administration will appoint a pro-crypto chairman to lead the SEC. Trump pledged at the Bitcoin 2024 conference, “I will fire Gary Gensler on day one.”
Brad Garlinghouse, CEO of Ripple Labs, shared similar sentiments on social media, stating: “Joined Cantor’s annual Crypto Conference today – safe to say that the US is ready to be the crypto capital of the world with the next Trump Administration. Also an apt shirt to wear… on perhaps what are Gary Gensler’s last days in office?”
There is speculation that Gensler’s resignation might lead the SEC to reconsider its appeal against Ripple Labs, potentially easing the regulatory pressures that have heavily impacted XRP’s price over recent years.
Regulatory Tailwinds For XRP Under Trump
The anticipated policy shift under the upcoming Trump administration is another critical factor contributing to the appreciation of XRP’s price. The administration is reportedly preparing to adopt a more conducive stance toward cryptocurrency, with plans to appoint industry-friendly candidates to key regulatory positions.
Garlinghouse remarked today on social media, “Chatted with Tony Romm about how the incoming Trump Administration is already engaging proactively with the crypto industry on clear rules of the road… what a breath of fresh air!”
Garlinghouse further emphasized the potential positive impact, stating: “I’ve shared some thoughts on what the Trump administration could mean for crypto and wanted to also recognize the XRP family’s patience and unwavering support. A lot has happened since XRP was the 2nd most valuable digital asset. It’s been – at times – a frustrating journey. ~6 years since the SEC started meddling in the crypto market, picking winners and losers… ~4 years since the SEC sued Ripple.
He added, “Now FINALLY we see a light at the end of the tunnel as these external (frankly unnatural and manipulative) market factors fade. The tides are shifting, headwinds are turning to tailwinds, and the opportunity for those of us who believe in the future for XRP is enormous!”
Increased XRP Whale Activity
Another significant factor in XRP’s price surge is increased whale activity, indicative of large-scale investments by major holders. On-chain analysis firm Santiment reports that wallets with at least 1 million XRP now hold a combined 45.61 billion tokens, their highest amount held since June 2018. Over the past two years, whales and sharks have reversed course and accumulated 3.44 billion more XRP, marking an 8.16% increase. Traders have enjoyed a 40% return in the past seven days.
Technical Breakout
Complementing these fundamental drivers are technical factors that contribute to the XRP price action. XRP has broken above a six-year-long symmetrical triangle pattern, a significant technical indicator suggesting the potential for sustained upward momentum. Historically, such breakouts have been precursors to notable price increases, and in XRP’s case, the price had previously declined by as much as 97% during the formation of this pattern. At the time of writing, XRP was trading at $0.85.
In conclusion, the convergence of these factors has created a favorable environment for XRP, paving the way for potential long-term growth. As the market continues to evolve, keeping an eye on regulatory developments, whale activity, and technical indicators will be crucial for investors and analysts alike.
