On Tuesday (December 3), the price of Ripple (XRP) soared to a high of $2.71, with a monthly increase of over 400%. As Bitcoin's dominance recedes, a new round of Altcoin Season is emerging, with more funds flowing into mid-cap tokens. The market is betting that after Donald Trump is elected president, the SEC will drop the charges against Ripple for being a security, and Wall Street fund WisdomTree has submitted the S-1 filing for an XRP ETF.
WisdomTree submitted the latest S-1 filing for the XRP ETF to the SEC on Monday, attracting the attention of Wall Street investors. Notably, XRP has recently seen a strong rebound, surpassing the market capitalization of Solana's token SOL and the world's largest stablecoin USDT. Furthermore, the filing showcases market confidence in digital assets and their regulatory dynamics, especially after Trump won the election.
The S-1 filing for the XRP ETF submitted by WisdomTree is registered in Delaware, sparking optimism across the cryptocurrency industry. This development comes after a significant rise in XRP, highlighting its growing market relevance.
Investors have shown renewed enthusiasm for digital assets, viewing this ETF as a milestone for broader institutional acceptance. Furthermore, before WisdomTree submitted its application, other major players such as Bitwise, 21Shares, and Canary Capital had already submitted similar applications to the U.S. Securities and Exchange Commission.
It is noteworthy that the momentum of XRP is part of a larger cryptocurrency resurgence driven by Trump's recent election victory. Market participants expect the Trump administration to introduce more favorable policies for cryptocurrencies, which could expedite the approval of cryptocurrency ETFs. Experts predict that under the Republican government, a large number of altcoins will launch ETFs in the U.S.
Additionally, Ripple CEO Brad Garlinghouse expressed optimism about the potential growth of XRP. He also revealed ongoing negotiations with the Republican government, further boosting market confidence. However, the timing is noteworthy as SEC Chairman Gary Gensler will step down in January 2025.
Many people consider him an anti-cryptocurrency regulator, and his departure could welcome a leader who supports cryptocurrency reform. Coinbase executives recently stated that under Trump's leadership, specialized cryptocurrency legislation could be passed 'quickly', indicating a favorable environment for institutional adoption of cryptocurrencies.
XRP Technical Analysis
The popular on-chain analysis platform Santiment highlights that XRP recently surged to a new high since January 8, 2018. Large holders or wallets with 1 million to 10 million XRP have accumulated approximately 679.1 million tokens worth about $1.66 billion in just three weeks. Additionally, for the first time in XRP's over 8-year history, the total number of non-empty wallets has exceeded 5.5 million.
Additionally, CryptoQuant founder and CEO Ki Young Ju stated that Coinbase whales are the main force driving up XRP. He noted that in the past 30 days, Coinbase's minute-level price premium ranged between 3% and 13% during the ongoing price surge. In contrast, Upbit, South Korea's leading cryptocurrency exchange, has more XRP investors than Binance, but so far, the premium is not significant.
Analyst Yashu Gola stated that since November 2024, the price of XRP has risen over 400%. However, bulls are now facing increasing pressure to maintain the upward trend, with the cryptocurrency expected to drop to $2.175 in December, about a 20% decline from the current price level.
As bearish prospects arise, XRP trading is in a critical resistance range of $2.72-$2.85, consistent with the 4.236 and 4.618 Fibonacci retracement levels. This range aligns with the ascending trend line resistance on the four-hour chart, which has recently undergone a 13-20% correction towards the parabolic support target.
Resistance at the level could trigger a pullback to the target of $2.175, consistent with the 2.618 Fibonacci extension level, parabolic support, and the 20-4H index moving average.
The Relative Strength Index (RSI) is above 82, far exceeding the 70 threshold, indicating that XRP is in the overbought zone, which further increases the likelihood of a short-term price correction in December.
XRP must break through the resistance level of $2.85 to decisively negate the bearish outlook.
