While most of the cryptocurrency market has experienced a minor correction over the past few hours, Ripple’s native token has bucked the trend and surged.
XRP broke through its recent yearly highs and hit a 16-month high of around $0.847.
XRPUSD. Source: TradingView
Bitcoin briefly topped $93,000 earlier today but has since fallen more than $5,000 and is currently struggling below $88,000. Ethereum also retreated from its daily highs, falling below $3,100.
Even the high-priced meme coins have struggled in the past few hours, with DOGE falling from $0.4 to below $0.38, PEPE falling to $0.0000215, and so on.
In contrast, XRP bucked the trend and surged 16% to break $0.8 for the first time since July 2023.
XRP hits six-month high amid Gary Gensler resignation speculation
XRP price surged 20% in the past 24 hours to hit $0.8, reflecting a significant shift in market sentiment. The rally was driven by growing optimism about regulatory changes that could benefit Ripple and XRP. U.S. Securities and Exchange Commission Chairman Gary Gensler published an open letter on social media indicating his possible resignation, sparking positive expectations in the cryptocurrency industry. Due to Trump’s remarks in support of the crypto market, there is widespread speculation in the market that under Trump’s leadership, the regulatory approach will be more conducive to cryptocurrencies.
Ripple, the organization behind XRP, has long faced regulatory challenges from the SEC, and Gensler’s exit could pave the way for a more favorable stance. The resignation rumors come amid renewed investor enthusiasm for XRP amid growing interest in the cryptocurrency.
Additionally, the XRP price rally coincided with Ripple receiving a favorable ruling in its ongoing XRP litigation. In a recent ruling, a U.S. court granted Ripple Labs and its CEO Brad Garlinghouse a judgment and a stay of the class-action lawsuit filed against them. The ruling reflects a legal victory for Ripple and its executives, allowing them to move toward a final resolution while temporarily halting specific claims.
Ripple's victory in this phase of the lawsuit boosted market sentiment and signaled a weakening of the SEC's argument that XRP is an unregistered security. The court's decision effectively supports Ripple's claim that XRP trading on the secondary market does not qualify as a securities offering, a position that could further drive XRP prices higher.
Whale activity signals potential accumulation
Meanwhile, a large amount of XRP whale activity has been observed, further adding to the allure of XRP’s price action. 105 million XRP tokens (worth about $76.5 million) were transferred from Binance to an unknown wallet. Such a large transfer is a sign of potential accumulation, indicating that investors are holding XRP for long-term gains.
The movement of XRP from exchanges to private wallets has reduced its availability for instant transactions, which could add to upward price pressure if demand continues to grow. The reduction in liquidity supply, coupled with favorable regulatory developments, could push XRP prices further higher.
At press time, the XRP price is $0.82, having risen by more than 18% in the past 24 hours. The rise has brought its market cap to $46.79 billion, and the subsequent increase in trading volume is currently $10.17 billion. And after breaking out of the 40-month symmetrical triangle, XRP is expected to surge again to $1.5.
XRP Price Prediction: If the $0.70 support holds, the $0.80 breakout remains valid.
After peaking at $0.847, XRP price retreated slightly to consolidate above $0.82 at press time Thursday.
However, with $33 million in exchange outflows tightening the market supply, XRP price appears to be on the verge of another upward move to try and test the $0.85 level.
The bullish thesis is supported by the rising green bars in the Bull-Bear Power (BBP) technical indicator, which suggests strong buying momentum.
If XRP sustains above the $0.70 short-term support, the bulls are likely to regroup and vigorously attempt to reclaim the $0.80 resistance, which could further reach $0.85 if the buying pressure persists.
However, this bullish thesis may be invalidated if XRP breaks below the $0.70 support as this could trigger selling pressure. In such a case, a drop to the R1 pivot level of around $0.60 is possible.
In short, as trading volume increased and bullish sentiment strengthened, XRP price surged to $0.847, and the judge approved the judgment and suspended the class action lawsuit, Ripple won a favorable court ruling, which strengthened people's optimism about XRP, and the activity of whales also intensified the signal potential accumulation, accompanied by a decrease in liquidity supply, coupled with favorable regulatory developments, which may allow XRP price to rise further.
