XRP saw a significant 25% increase in price following the news of Gary Gensler’s upcoming departure as chairman of the U.S. Securities and Exchange Commission (SEC). This surge in XRP prices occurred within a 24-hour period, with most of the gains happening during early Asian trading hours on Friday. There is a growing belief in the market that the regulatory environment in the U.S. may become more crypto-friendly for companies like Ripple, which is closely associated with XRP.
Ripple Labs, the company behind XRP, has been embroiled in a legal battle with the SEC since 2020 over allegations of selling XRP as a security to American investors. The resolution of this court case in 2024 has brought renewed attention to XRP, which is a major cryptocurrency with a market capitalization of $77 billion. Over the past week, XRP has seen a 65% increase in value, and over the past month, it has surged by 150%, according to data from CoinGecko. Market analysts at CoinDesk are now eyeing a short-term price target of $1.40 for XRP.
The election victory of Donald Trump in 2024 has been viewed positively by the crypto community due to his past statements supporting cryptocurrencies. Investors are hopeful that the new administration will implement policies that support the growth of the crypto industry. There is also speculation among traders about the possibility of an XRP exchange-traded fund (ETF) being approved in the U.S. given the perceived relaxation in regulatory oversight.
In recent trading sessions, XRP and dogecoin (DOGE) have seen significantly higher trading volumes on South Korean exchanges compared to bitcoin, indicating a surge in demand for these tokens. The open interest in XRP futures contracts denominated in U.S. dollars has also reached record levels, with more than 2 billion XRP tokens (worth over $2 billion at current prices) in futures positions anticipating further market volatility.
Overall, the outlook for XRP appears positive as it continues to make gains in price and attract significant interest from investors and traders. The evolving regulatory landscape in the U.S. and the potential for new financial products like an XRP ETF could further boost the demand for this cryptocurrency in the coming months.
