Ripple [XRP] saw a significant increase after Trump's victory in November. It has risen 372% in the past month, and its market size expanded nearly 5 times, from $29 billion to $138 billion.
This led it to temporarily replace Tether's USDT, becoming the third largest cryptocurrency by market capitalization. But what are the factors driving the surge and bullish market sentiment?
What is driving the development of XRP?
The first breakthrough surge occurred after the U.S. presidential election. During election week, after Donald Trump, who supports cryptocurrencies, was announced the winner, the altcoin rose by 16%.
In the second week of November, XRP continued to rise, increasing by nearly 80%, reaching $1.2 for the first time since 2021.
Subsequently, the dollar index briefly cooled down and surged again on November 21, coinciding with SEC Chairman Gensler's announcement that he would resign on January 20, 2025.
This statement is crucial as the market sees it as a tailwind for blockchain companies. The company has been engaged in a lawsuit with regulators regarding the security status of XRP for nearly four years.
Since 2020, regulatory issues have kept XRP's price subdued. News of Gensler's potential resignation allowed this altcoin to breathe. Following the announcement, XRP surged by 35%.
Interestingly, this altcoin surged further in the last week of November, gaining an additional 60% and breaking the $2 mark for the first time since 2018.
Last week's surge also coincided with reports that New York regulators might approve RLUSD before December 4.
In August, Ripple announced that the stablecoin was in private beta testing on Ethereum and other blockchains, and it would use RLUSD and XRP as part of the cross-border payment ecosystem for global coverage. Part of the statement is as follows:
Once RLUSD is available, Ripple will use both RLUSD and XRP in its cross-border payment solutions to serve its global customers and significantly improve their experience.
This has led to speculation that RLUSD will increase the adoption of XRP and drive its value, especially given that there are $1 billion worth of tokens in its custody account. Driven by strong bullish sentiment in the market, altcoins further surged to $2.49.
What is the next step for XRP?
However, in the case of the majority of the crowd being bullish, smart money turned bearish.
Data from CryptoQuant also supports the possibility of a pullback or a local short-term peak, as trading volume from whales to exchanges surged after XRP set a new cycle high. This indicates that large participants may be taking profits.
After Trump's victory and Gensler's resignation announcement, XRP surged by 370%.
Before RLUSD could be approved and whales took profits, XRP found itself at a crossroads.
Ripple [XRP] saw a significant increase after Trump's victory in November. It has risen 372% in the past month.
During the same period, its market size expanded nearly 5 times, increasing from $29 billion to $138 billion.
This led it to temporarily replace Tether's USDT, becoming the third largest cryptocurrency by market capitalization. But what are the factors driving the surge and bullish market sentiment?
In short, after Trump's victory and Gensler's resignation announcement, XRP surged by 370%, and before RLUSD could be approved and whales took profits, XRP found itself at a crossroads.