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 wave of Altcoin Season is returning, with more funds flowing into small and mid-sized tokens. The market bets that after Donald Trump takes office as President, the SEC will drop the charges against Ripple regarding XRP being a security, and Wall Street fund WisdomTree has submitted the S-1 filing for the XRP ETF.
On Monday, WisdomTree submitted the latest S-1 filing for the XRP ETF to the SEC, attracting attention from Wall Street investors. Notably, XRP has recently seen a strong rebound, surpassing the market capitalization of Solana's SOL and the world's largest stablecoin, USDT. Furthermore, the filing also demonstrates market confidence in digital assets and their regulatory dynamics, especially after Trump wins 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 new enthusiasm for digital assets, viewing this ETF as a milestone for broader institutional acceptance. Furthermore, before WisdomTree submitted its application, other major players like Bitwise, 21Shares, and Canary Capital had already submitted similar applications to the SEC.
It is noteworthy that XRP's momentum is part of a broader cryptocurrency revival driven by Trump's recent election victory. Market participants expect the Trump administration to introduce more cryptocurrency-friendly policies, which could accelerate the approval of cryptocurrency ETFs. Notably, experts predict that under a Republican government, a significant number of altcoins will launch ETFs in the U.S.
Additionally, Ripple CEO Brad Garlinghouse expressed optimism about XRP's potential growth. He also revealed ongoing negotiations with the Republican government, further boosting market confidence. However, the timing is noteworthy, as SEC Chairman Gary Gensler is set to step down in January 2025.
Many believe he is an anti-cryptocurrency regulator, and his departure may usher in a leader who supports cryptocurrency reforms. Coinbase executives recently stated that under Trump’s leadership, specialized cryptocurrency legislation could pass 'quickly,' indicating a favorable environment for institutional adoption of cryptocurrencies.
XRP Technical Analysis
Popular on-chain analytics platform Santiment highlights that XRP recently soared to a new high since January 8, 2018. Large holders or wallets with between 1 million and 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 over 8 years of XRP's development, the total number of non-bearish wallets has exceeded 5.5 million.
Additionally, CryptoQuant founder and CEO Ki Young Ju stated that Coinbase whales are the main driving force behind XRP's rise. He noted that in the past 30 days, during the continuous price increase, the minute-level price premium on Coinbase has ranged from 3% to 13%. In contrast, South Korea's leading cryptocurrency exchange Upbit has more XRP investors than Binance, but so far, the premium has not been significant.
Analyst Yashu Gola stated that since November 2024, XRP's price has increased by over 400%. However, bulls are now facing increasing pressure to maintain the upward momentum, and the cryptocurrency is expected to drop to $2.175 in December, about a 20% decline from current price levels.
As bearish prospects arise, XRP trades within a critical resistance range of $2.72-$2.85, aligning with the 4.236 and 4.618 Fibonacci retracement levels. This range coincides with the resistance of the ascending trend line on the four-hour chart, which has recently undergone a 13-20% correction towards the parabolic support target.
Resistance levels being blocked could trigger a pullback to the target of $2.175, which aligns with the 2.618 Fibonacci extension level, parabolic support, and the 20-4H exponential moving average.
The Relative Strength Index (RSI) is above 82, well above the 70 threshold, indicating that XRP is in the overbought zone, further increasing the likelihood of a short-term price adjustment in December.
XRP must break through the resistance level of $2.85 to decisively negate the bearish outlook.
