Ripple (XRP) price has surged 25% in the last 24 hours following the announcement of Gary Gensler's resignation as Chairman of the US Securities and Exchange Commission (SEC) on January 20, 2025.
This announcement brings relief to the popular “XRP Army,” which has had to deal with suppressed price action due to the Gensler-led SEC’s incessant petitions against Ripple. But that’s not all that happened.
Ripple Faces Significant Liquidation Following Gensler’s Notice
Gensler’s announcement appears to be a positive development for the crypto market overall. But XRP holders appear to have benefited the most. This was particularly significant given the unresolved legal issues between Ripple and the SEC that have persisted throughout his tenure.
As a result, it came as no surprise that the price of XRP surged and outperformed that of any other cryptocurrency in the top 10. Furthermore, the development triggered liquidations totaling $26.11 million in the last 24 hours.
Liquidation occurs when a trader fails to meet the margin requirements for a leveraged position. This forces the exchange to sell its assets to avoid further losses. In the case of XRP, the liquidation mainly resulted from a short squeeze.
Crypto market liquidations in 24 hours. Source: Coinglass
A short squeeze happens when a large number of short positions (traders betting on a decline) are forced to close, driving up the price as they rush to buy back the asset.
At the time of publication, XRP is trading at $1.40 and currently has a market cap of $80.64 billion. With Gensler’s impending departure, crypto lawyer John Deaton noted that XRP’s price gains could be even higher, and the market cap could rise to $100 billion.
XRP will soon reach a market cap of $100 billion. Times are changing, Deaton wrote on X.
Meanwhile, data from CryptoQuant shows that the total number of XRP sent to exchanges has decreased significantly. Typically, high numbers indicate increased selling pressure in the spot market. This suggests that more assets are being offloaded, potentially causing a price drop.
However, since it is low, XRP holders are refraining from selling. If this continues, the token’s value could rise beyond $1.40.
XRP inflows to exchanges. Source: CryptoQuant
XRP Price Prediction: Is $2 Coming?
According to the 4-hour chart, XRP has been trading within a range of $1.04 to $1.17 since Nov. 18. This sideways movement has resulted in the formation of a bull flag, a bullish chart pattern that signals potential upward momentum.
The bull flag begins with a sharp price increase, forming the flagpole, driven by significant buying pressure that overwhelms sellers. This is followed by a consolidation phase, where the price pulls back slightly and moves within parallel trendlines, creating the flag structure.
Yesterday (21), XRP broke out of this pattern, signaling that buyers have taken control of the market. If this momentum persists, the price of XRP could surpass $1.50, potentially approaching the $2 threshold.
XRP 4-hour analysis. Source: TradingView
However, this bullish scenario depends on market behavior. If holders decide to lock in profits, selling pressure could push XRP’s price below $1, erasing recent gains.
The article XRP Price Jumps 25% After Gensler Announces SEC Resignation appeared first on BeInCrypto.
