With the holiday season approaching, all focus turns to Ripple’s flagship cryptocurrency, XRP, which has survived years of regulatory scrutiny and market volatility. But with the winds of regulation changing course in the U.S., combined with high-stakes manoeuvres by big investors and a bullish outlook on charts, XRP is a candidate to be the outperforming crypto asset.
From whale pile-ups indicating decreased selling motivation to legal optimism surrounding Ripple’s long-running struggle with the SEC, the ground is ripe for XRP to make big price moves prior to Christmas. Now, both analysts and enthusiasts are wondering if XRP might not just break past crucial resistance levels but actually make a run at its all-time high.
Regulatory Shifts Favoring XRP
Gary Gensler, the U.S. Securities and Exchange Commission (SEC) chair, is reportedly set to resign on January 20, 2024. Gensler’s tenure has included tight scrutiny of cryptocurrencies, with the SEC notably suing Ripple Labs, claiming that it was unregistered securities in the form of XRP sold. This lawsuit has long been a significant overhang on Ripple’s market performance.
But the exit of Gensler is likely to pave the way for a more crypto-friendly regulatory approach that could see ongoing cases against firms like Ripple dropped. This could resolve major legal uncertainties and allow investors to gain confidence in a massive increase in XRP price.
Whales Accumulation Signals Confidence
On-chain data has recently shown “whales” accumulating XRP. Not all investors believe that a price drop is inevitable: significant deposits of XRP from exchanges to private wallets have been recorded, which indicates that these investors (most likely at least) expect a rise in the currency’s value and act to prepare for this. This also takes from circulating supply in exchanges, which could cause upward price pressure as demand will outpace available supply.
Technical Indicators Point to Bullish Momentum
XRP technical charts indicatea breakout from a symmetrical triangle pattern, something that tends to foreshadow the potential for price spikes. The Relative Strength Index (RSI) is high, indicating robust buying pressure. Usually, high RSI indicates overbought status, but in the crypto market, it goes before explosive price action to the upside. 71046 Analysts have pinpointed two levels of resistance at $1.56 and $2.76. Breaching these levels could pave the way for XRP to take on its all-time high of $3.84.
Market Sentiment and Broader Trends
Bitcoin has just shy of the moving average of 100,000, as the rest of the crypto market is entering a bullish stage. General positive sentiment has ripple effects on altcoins as seen with XRP, where price movements tend to exaggerate crypto sentiment.
Also, the prospective approval of XRP-related exchange-traded funds (ETFs) may draw in institutional investors, thereby increasing demand. For example, asset manager WisdomTree has submitted an application to create a trust for an XRP ETF, indicating increasing institutional interest.
What’s Next?
This combination of favourable regulatory changes, strategic building by large investors and strong technical indicators indicates that XRP is poised for a major price breakout. Therefore, traders must watch regulatory actions following the appointment of a new SEC chair and a resolution to the Ripple lawsuit, as they will be crucial in determining XRP’s path forward.
As XRP continues to thrive under prevailing positive trends, it may witness significant price appreciations before the year concludes, thereby achieving or even exceeding previously recorded all-time highs.
Stay tuned to The BIT Journal and keep an eye on Crypto’s updates. Follow us on Twitter and LinkedIn, and join our Telegram channel to be instantly informed about breaking news!
