The recent XRP price surged to the point where my brain was deprived of oxygen. In just one month, it soared 460%, from $0.5 to $2.877. As of December 2, the market value reached $140 billion, successfully surpassing USDT and becoming the third largest cryptocurrency in the market. Such a fierce increase made many old investors say they couldn't understand it. It fell for 4 years and then rose 5 times. What a monster coin! Next, I will review the whole process of XRP's price increase; analyze the internal and external reasons for the price increase; and finally summarize the development prospects of XRP.

The whole process of XRP pull

Although we all know that the rapid rise in one month is definitely the result of market manipulation, the market maker of XRP is indeed quite aggressive.

Judging from the K-line, XRP started to rise on November 6. In the month before that, the price of the currency was in a sideways phase. However, during this period of sideways trading, a lot of information was released on the news and capital sides, paving the way for the subsequent rise.

First, let's look at the news. Ripple's official Twitter account has been extremely active since October, with more than 40 tweets released in October alone, four times the number in September. The tweets included project progress, awards, media coverage, and charitable donations, all of which were positive news. In addition, the annual RippleSwell event was held in mid-October, inviting leading figures and experts and scholars in the financial industry to further expand the project's influence. With the continuous release of positive news, the coin price has been in a sideways state, which actually gave a long time to get on board.

After entering November, Ripple CEO said that the Trump administration may bring new hope to the encryption industry, and XRP may usher in a turnaround, and he continued to call for XRP afterwards. This is equivalent to officially announcing the start of the pull-up, and the price of the currency began to show an upward trend. On November 1, Grayscale officials also announced that its XRP Trust Fund is now open to qualified certified investors, further verifying the motivation to pull the price. This was followed by a series of cooperation promotions, and in conjunction with the media to continuously release good news, the price of XRP began to rise rapidly.

Next, let’s look at the financial side

XRP's trading volume began to fluctuate slightly on November 7, doubling from the previous day. If you keep an eye on the news, you can ambush at this node. If you haven't tracked the project information before, you can add XRP to your watch list when you see this change. On November 11, the trading volume tripled, and then if you look back at the news, partners who are not ambushing can enter the market directly, because the doubling represents a large influx of hot money. In the next 4 days, XRP's trading volume has been rising in a step-by-step manner, so you can hold it with confidence. November 23 was a node, when the trading volume doubled 2.5 times and then began to fall. If you do swing trading, this is a stop-profit point. From November 11 to November 23, the profit was 145%. On November 30, the trading volume tripled again, and you can re-enter the market at this time. Holding it to date is still profitable at 35%. At this point, the swing profit will also be 180%. If you had bought in after the unusual movement on November 7 and held on to it until now, your profit would have reached 375%.

Through the above cases, how can we find the next XRP-like coin in advance and get the maximum benefit? I have summarized the following two points:

1. Pay attention to the news, monitor the recent dynamics of each project, and decide to buy the target: Here we mainly monitor Twitter and information websites. Twitter looks at the release frequency and message content, and information websites look at the popularity of the sector and whether there are project analysis articles. Positive information includes major project progress, summary reports, and announcements of cooperation with other projects/institutions. If a project has suddenly updated frequently recently and started to release good news, it has the intention to pull up. The several coins I recommended in the VIP group were discovered through news, verified by the technical aspects, and then recommended to group members. They are all currently in a profitable state.

2. Observe the changes in transaction volume and the situation to decide the entry and exit timing. If the price keeps rising for a period of time, even if you don’t buy at the low point, you can enter the market when the transaction volume shows an upward trend, so that you can definitely get a small wave of gains. Then continue to observe the changes in transaction volume. If the transaction volume continues to grow, you can continue to hold it. Don’t be afraid of heights. When you observe that the transaction volume begins to decrease in a step-by-step manner, sell all of it, so that you can maximize the gains from the band.

If you are unable to monitor information and screen currencies full-time, you can also join my VIP group, where dedicated researchers provide potential currencies every day.

Internal and external reasons for price increases

External causes

1) Regulatory relaxation

Trump's election gave the cryptocurrency community a shot in the arm. Whether it was his promise to make the United States the "global capital of cryptocurrency" or to replace the chairman of the SEC, it meant providing a more relaxed regulatory environment.

XRP's parent company Ripple has already suffered from SEC regulation. As early as the end of 2019, the SEC sued Ripple, saying that his sale of XRP violated securities laws. In the following four years, Ripple seemed to be trapped in a vicious circle, constantly countersuing, submitting documents, appealing, and defending. As of now, the case has not yet ended and is still awaiting the final trial.

However, in 2023, the situation began to turn around. The federal court determined that some of the products sold by Ripple were securities. This ruling left room for Ripple's future operations. On November 21, 2024, SEC Chairman Gary Gensler said that he would leave office on January 20, 2025. On December 1, the former CFTC Chairman said: The SEC may abandon the lawsuit against Ripple.

With Trump taking office next year and the replacement of the SEC chairman, the regulatory environment may become more friendly. This long-running trial will soon have a definite result. And this landmark case will also determine how cryptocurrencies are regulated in the United States.

2) Boosted by the Korean market

XRP has been very popular in the Korean market. According to Korean media survey data, XRP is the favorite altcoin of all ages in Korea. In this round of surge, Koreans are also confirming this statement with their actions. According to statistics, XRP's trading volume in the Korean market in the fourth quarter reached 38.6 billion US dollars, even exceeding Bitcoin's 301 US dollars. In the past 24 hours, among the top five exchanges in XRP spot trading volume, Korea's Upbit and Bithumb still occupied two seats!

This is actually due to Ripple Labs' early marketing strategy. Ripple Labs sold XRP in South Korea in 2014 as a Ponzi scheme, which established a huge XRP community. As the price of the currency rises, these early investors have received generous rewards and have loyal believers. Coupled with the Korean belief that "speculating on currency can change your life", the XRP community has continued to grow and develop.

Internal Causes

1) Participate in political actions to reverse litigation difficulties

In my previous article about the US election, I mentioned that in this election, many companies in the crypto industry invested real money in order to gain a more favorable regulatory environment. Among them, Ripple Labs donated $25 million. Now, judging from the results, this litigation dilemma has begun to turn around.

In addition, according to Reuters, Ripple is also vying for a seat on the cryptocurrency advisory committee that Trump plans to establish. Companies involved will directly influence policy direction in the future.

2) Continuously expand strategic advantages

Ripple’s initial goal was to transform the existing financial payment system, especially to solve the high costs and inefficiencies in traditional bank settlements. So far, Ripple has established in-depth cooperation with 100 top banks and financial institutions, including Bank of America, Credit Suisse, Mitsubishi UFJ Financial Group and other large companies, and is constantly expanding its actual application scenarios.

In terms of compliance, Ripple and its subsidiaries have actively deployed in the United States, Singapore and other places to apply for payment institution licenses to ensure legal operations. So far, they have obtained nearly 40 relevant qualifications, providing strong support for the rise of XRP.

What are the future prospects?

At present, Ripple has gradually shifted its strategic focus from traditional cross-border payments to the Web3 field. A source has released information that the New York Department of Financial Services will approve its stablecoin product, RLUSD, which is scheduled to be officially launched on December 4. The emergence of RLUSD not only brings a more flexible and stable currency tool to Ripple's payment system, but also provides support for DeFi and other fields, expanding the ecological landscape. Most importantly, RLUSD is a stablecoin that meets the US financial regulatory standards. Once it operates in compliance, it will be easier to expand into the global market in the future.

In addition, asset management companies such as 21Shares and Bitwise Asset Management have also recently submitted XRP ETF proposals, which further verifies Ripple's strategic advantage in integrating Web3 with traditional finance. Once the ETF is approved, it will bring greater capital support for the development of Ripple and XRP.

In summary, although XRP is an old coin launched in 2012, it has been facing regulatory pressure, competitive pressure and controversy over its lack of decentralization. However, from the actual performance, it is backed by Ripple and has a valuable bottom line. Ripple is not satisfied with its current achievements in global cross-border payments, and is taking positive measures to enhance the development potential of XRP, such as investing in defi, stablecoins and other fields. Therefore, it is particularly eye-catching among a number of old public chains. With the relaxation of supervision, the promotion of RLUSD and ETF progress will provide more impetus for the rise of XRP prices.

As of December 3, XRP's market value was $150.9 billion. Compared with Solana, which has a prosperous ecosystem, XRP's market value is still 39% higher. Therefore, although XRP can be held for a long time, it is still risky to enter the market at the current price. You can buy it after the price falls back and ambush the next surge.