Ripple's XRP ($XRP) surged after Gary Gensler announced plans to step down as SEC Chair. While mid and long-term price predictions for XRP appear optimistic, there has been a correction at the time of writing.
In the 24 hours following the aforementioned incident, the price increased by approximately 12%. The next day, the price rose an additional 18%, however, by Saturday, a correction process had begun.
At the time of writing, XRP has decreased by 12% today, nearly returning to Thursday's levels. XRP may begin consolidating near the $1.2 to $1.4 range. Enthusiastic investors are anticipating new regulatory policies supporting cryptocurrencies.
Market sentiment is also influenced by the ongoing legal battle between Ripple and the SEC and subsequent speculation about Ripple's mid and long-term price targets.
XRP breaks through the $1.00 level as market momentum increases
The ongoing market interest in XRP is also reflected in the price surge. The current market capitalization is $76.16 billion, which is a decrease of 9.6%. The 24-hour trading volume decreased by 27.73% to $11.30 billion as of now.
Immediate resistance is near $1.2388, and as momentum strengthens, the price target lies in the range of $1.30-$1.50.
On the negative side, XRP is supported at around $1.10, while in the long term, its fundamentals are solid as the total circulating supply of XRP is 56.93 billion, out of a total supply of 99.99 billion.
Currently, market participants are keeping an eye on South Korea, where XRP trading volumes far exceed Bitcoin, indicating significant interest from retail investors.
Gensler's resignation and regulatory optimism surrounding Ripple
The cryptocurrency market's reaction to SEC Chair Gary Gensler's resignation has positively impacted XRP. Investors view this as a turning point in U.S. cryptocurrency regulations.
This is expected to eventually lead to more favorable policies for Ripple's ecosystem. Brad Garlinghouse, CEO of Ripple, has expressed new optimism about winning the company's lawsuit against the SEC.
Ripple's case is still under investigation. The recent settlement of BitClave has been compared to a $4 million compensation, which could set a new precedent for securities-related lawsuits in the cryptocurrency space.
Market enthusiasm has been further amplified by Ripple's expanding partnerships. This includes new exchanges to distribute Ripple USD (RLUSD), enhancing XRP's global presence.
Additionally, XRP deposits on Binance have surged to a record high in 18 months, indicating increasing optimism. This surge is occurring among both retail and institutional investors.
Mid and long-term XRP price predictions
Market analysts believe that XRP's medium-term forecast is optimistic, with predictions that XRP's price could rise to $1.96 if recent patterns repeat. In long-term forecasts, macroeconomic interest and speculation will drive price targets up to $8-13.
A scenario envisioning a potential price surge to $40, driven by U.S. regulatory reforms or a successful conclusion to Ripple's legal battles.
In addition to optimism regarding regulations, discussions around potential spot ETFs for XRP, Solana (SOL), and HBAR have further reinforced investor confidence. This signals a possible shift towards altcoin season.
Ripple's active engagement with the broader cryptocurrency ecosystem is contributing to XRP's bullish trend. Ripple recently had discussions with Cardano (ADA) founder Charles Hoskinson about DeFi, stablecoins, and integration.
However, XRP's current price still faces several challenges, including a slight decrease in payment volume. Payment volume underscores the importance of sustainable positive market sentiment to maintain growth momentum.
With Ripple's upcoming legal battles, ETF approvals, and market volume trends, investors should continue to monitor XRP's price.
