Why is XRP going up? Trump’s victory, Gensler’s exit fuel the surge

XRP has rallied 370% after Trump’s victory and Gensler’s resignation statement.
XRP hit a crossroads ahead of likely RLUSD approval and whales’ profit-taking.

As a seasoned crypto investor who has witnessed numerous market cycles and regulatory battles, I must admit that XRP’s recent rally has been nothing short of astonishing. The 370% surge following Trump’s victory and Gensler’s resignation statement is a testament to the power of speculation and market sentiment in the crypto world.

After Trump’s presidential win in November, the digital currency Ripple (XRP) experienced a significant surge. In fact, over the past month, its value has increased by an impressive 372%.

Over the same period, its market size expanded by nearly 5x, from $29 billion to $138 billion.

momentarily caused USDT, Tether’s token, to surpass other cryptocurrencies in terms of market capitalization to secure the third spot; however, let’s discuss what’s fueling this surge and the optimistic outlook.

What’s driving XRP?

Following the U.S. Presidential elections, there was an initial surge in the market. During the election week itself, the value of the altcoin increased by 16%, likely due to the fact that Donald Trump, a known supporter of cryptocurrencies, was announced as the winner.

During the second week of November, XRP continued its surge, gaining approximately 80%, reaching a high of $1.2 for the first time since early 2021.

On November 21st, there was a temporary drop in temperature that sparked another rise (the second leg up), and this occurrence happened concurrently with Gary Gensler’s announcement about his resignation as the chair of the US SEC, which he planned to do by January 20th, 2025.

The announcement was crucial, as the market perceived it as a tailwind for the blockchain firm. It has been locked in a four-year lawsuit with the regulator on the security status of XRP.

Since 2020, the regulatory challenge has held back XRP’s price growth. However, the potential resignation of Gensler provided some relief to the altcoin. After the announcement, XRP surged by approximately 35%.

Remarkably, the value of this altcoin climbed significantly during the final week of November, adding an additional 60% to its worth and surpassing the $2 mark for the first time since 2018.

The pump last week occurred around the same time as news broke about the anticipated approval of RLUSD by the New York regulator, scheduled for December 4th.

Ripple disclosed in August that it had entered the confidential testing stage for its stablecoin on Ethereum and various other blockchain networks.

As per the company’s announcement, they plan to employ RLUSD and XRP within their international payment system to extend its global influence. In other words, these digital assets will be utilized to facilitate cross-border transactions on a worldwide scale.

When RLUSD becomes accessible, Ripple intends to incorporate both RLUSD and XRP into its international payment system. This move aims to enhance the service for its worldwide clients, significantly improving their overall experience.

These actions by RLUSD have sparked discussions about potentially boosting XRP’s acceptance and raising its worth. With their massive $1 billion worth of XRP held in escrow, this is particularly significant. The altcoin then saw a significant rise to $2.49, fueled by optimistic market conditions that were already strong.

What’s next for XRP?

However, smart money turned bearish amid the overwhelming crowd’s bullish, per Market Prohit data.

According to CryptoQuant’s findings, an increase in transactions from whales to exchanges may suggest a potential correction or short-term peak following the new highs reached by XRP. This trend could indicate that big investors are cashing out their profits.

2024-12-02 22:15

What’s driving XRP?

What’s next for XRP?

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