XRP is reportedly positioned for a significant rally, fueled by six key factors, including the recent regulatory approval of Rippleās stablecoin RLUSD and Donald Trumpās re-election.
Additionally, a sharp increase in daily transactions on the XRP Ledger is emerging as another catalyst for potential growth.
š¶XRPās Current Market Position
XRP has regained its status as the third-largest cryptocurrency by market capitalization, reaching a valuation of $145 billion and overtaking USDT, the worldās largest stablecoin. Currently trading at $2.50, XRP is slightly below its yearly peak of $2.80. Despite this, analysts predict that the asset could achieve unprecedented highs in the coming months. A detailed analysis by CNF highlights six key bullish factors driving optimism around XRP.
š¶Technical Indicators Suggest a Bullish Momentum
Following a broad market correction and liquidations, XRP declined to just above $1.90. However, on December 17, the asset rebounded sharply to $2.70. According to Jeff Park, Chief Strategist at Bitwise, this rebound followed what he described as āone of the most intense liquidation events in the altcoin market.ā During this recovery, XRPās simple and exponential moving averages indicated strong bullish momentum, suggesting the potential for an explosive rally.š¶RLUSD Gains Regulatory Approval
Rippleās RLUSD stablecoin recently secured regulatory approval from the New York State Department of Financial Services, leading to its listing on major exchanges. This announcement triggered an immediate price surge of 11%, with XRP jumping from $2.38 to $2.47 within minutes.
š¶Growing Activity on the XRP Ledger
Data reveals that daily transactions on the XRP Ledger increased significantly, rising from 0.73 million on September 17 to 1.4 million by December 16. Over the same period, payment volumes in XRP grew from 762 million to 1.99 billion tokens. Analysts view this surge in network activity as a sign of enhanced engagement, which could drive long-term price growth.
š¶Political Developments: Trumpās Re-Election and Genslerās Exit
Following Donald Trumpās re-election, SEC Chairman Gary Gensler announced plans to step down on January 20, 2025. Paul Atkins, a former SEC Commissioner, has been named as his successor. This development has led to speculation that the SEC may settle or withdraw lawsuits against crypto firms, including Ripple. Rippleās Chief Legal Officer, Stuart Alderoty, stated that the companyās legal strategy has created a framework to counteract Genslerās anti-crypto agenda.
š¶Rippleās Resilient Business Model
Rippleās strong business fundamentals continue to bolster its position. Digital asset researcher Anderson highlights the following as Rippleās key advantages:
ā¢ Ownership of approximately 45% of the total XRP supply.
ā¢ The potential of RLUSD to expand USD usage among financial institutions and enterprises.
ā¢ Trumpās promise to support U.S.-based crypto companies.
ā¢ Development of a next-generation cross-border payment system for businesses.
š¶Broader Market Trends: Dollar Inflation and Bitcoin Halving
The dollar is currently in an inflationary cycle, while Bitcoinās halving event has historically driven bullish price trends over a 12 to 18-month period. This macroeconomic backdrop is expected to positively influence XRP, with Ripple investor Vincent Van Code projecting the asset could reach $5 by February 2025.
These combined factors suggest that XRP is well-positioned for a remarkable run in the near future.
š„XRP News: 6 Indicators Ripple (XRP) Could Be Ready for Its Next Big Surgeš„
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content.Ā See T&Cs.
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