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The price of XRP is on the rise, rising by 20% over the past two days and a staggering 47% in the past five days. The rise can be attributed to a combination of factors, including speculation surrounding the potential resignation of SEC Chairman Gary Gensler, regulatory tailwinds under the incoming Trump administration, increased whale activity, and a notable technical breakthrough.
#1 Speculation about the resignation of SEC Chairman Gary Gensler
The main driver behind the recent XRP price movement is growing speculation regarding the possible resignation of Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC). On November 14, Gensler spoke at the Practicing Law Institute’s 56th Annual Conference on Securities Regulation, where he praised the SEC’s efforts. “It has been a great honor to serve with them, do people’s work, and ensure our capital markets remain the best in the world,” Gensler said.
The cryptocurrency community on Xinters interprets this speech as a possible farewell speech, especially in light of the upcoming transition after Donald Trump’s victory in the US presidential election. Investors expect the Trump administration to appoint a pro-crypto president to lead the Securities and Exchange Commission. “I will fire Gary Gensler on day one,” Trump pledged during the 2024 Bitcoin conference.
Brad Garlinghouse, CEO of Ripple Labs Repeat These sentiments on In office?!”
Following Gensler’s resignation, there is speculation that the SEC may reconsider its appeal against Ripple Labs, which could ease regulatory pressures that have greatly affected the price of XRP over the past years.
#2 Regulatory tailwinds for XRP under Trump
The expected shift in policy under the incoming Trump administration is another crucial factor contributing to the rise in XRP prices. The administration is reportedly preparing to adopt a more lenient stance toward cryptocurrencies, with plans to appoint industry-friendly candidates to key regulatory positions.
“I spoke with Tony Rom about how the incoming Trump administration will actually proactively deal with the cryptocurrency industry with clear rules of the road…what a breath of fresh air!” Garlinghouse commented today on X.
Further emphasizing the potential positive impact, Garlinghouse male Via ~6 years since the SEC started interfering in the cryptocurrency market, picking winners and losers… ~4 years since the SEC filed a lawsuit against Ripple.
He added: “Now we are finally seeing a light at the end of the tunnel as (unnatural and frankly manipulative) external market factors are fading away. The tides are changing, headwinds are turning into tailwinds, and the opportunity for those of us who believe in the future of XRP is enormous!”
#3 Increased XRP whale activity
Whale activity, indicative of large-scale investments by large holders, also played an important role in the rise in XRP prices. On-chain analysis company Santiment Reports On Traders have enjoyed a +40% return over the past seven days.”
#4 Technical breakthrough
Complementing the fundamental drivers are the technical factors that contribute to XRP’s price movement. XRP has broken out of a six-year-old symmetrical triangle pattern, an important technical indicator that indicates the potential for continued bullish momentum. Historically, such breakouts have been preceded by notable price increases, and in the case of XRP, the price previously declined by up to 97% while forming this pattern.
At press time, XRP was trading at $0.85.
Featured image created with DALL.E, a chart from TradingView.com