XRP fell 12% as its market cap fell below Tether, returning the price to $2.26. Amid wide rotation from altcoins to these major cryptocurrencies, ETH and BTC posted gains of 5% and 7%, respectively. Positive developments, including pro-crypto SEC chairman candidate Paul Atkins, could influence XRP’s continued rise. While upcoming SEC changes may favor altcoins, Bitcoin is becoming increasingly distinct from other cryptocurrencies on the market.
After an impressive rally over the past four weeks or so, XRP has cooled down somewhat, falling 10% on the daily time frame.
1 The price of XRP has returned to US$2.26 (AU$3.51), and its market capitalization is once again slightly below that of Tether. Other altcoins such as SOL, BNB, and ADA also experienced drawdowns, while ETH and BTC rose 5% and 7% respectively, with the latter finally breaking through the crucial USD 100,000 barrier.
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Pav Hundal, chief market analyst at Swyftx, believes the outflow from alt currencies to ETH and BTC is part of a rotation into value, with traders expecting Bitcoin's rally to continue. are.
He said the expectation of $100,000 alone is “reason enough for traders and investors to return to Bitcoin.”
XRP continues to rise following bullish developments from the SEC
Cryptocurrency analyst Dirk Defender said that a correction in XRP is expected and believes “the sideways movement could continue for a little while longer.” However, overall, we expect the rally to continue, with immediate targets of US$2.92 (AU$4.54) and US$3.99 (AU$6.20) per coin.
Hello everyone. I hope you are well!#XRP This correction is expected as it continues between Fibonacci levels.
The movement on the side could last a bit longer.
Supports $2.27, $2.13
Target is $2.92, $3.99
XRP's momentum will continue.#XRP army #ripple pic.twitter.com/nKB5ZXXNXC
— Dark Defender (@DefendDark) December 4, 2024
While traders may be rotating into ETH and BTC, XRP holders are celebrating several factors that are positively impacting XPR price. President-elect Donald Trump has just announced that he will nominate Paul Atkins to be the next Chairman of the Securities and Exchange Commission (SEC).
Atkins, a US financial policy veteran and former SEC commissioner, is a crypto advocate and is seen as what Trump calls a “common sense” candidate.
Cryptocurrency attorney James “MetaRoman” Murphy welcomed the appointment, saying that while Atkins has a lot of work to do at the SEC, he is the right person for the job. “He is a wonderful person with integrity,” he added.
I am pleased to announce that Vanderbilt Law School alumnus Paul Atkins has been named SEC Chairman.
Paul is a wonderful person with great professional integrity.
Much work is needed to restore the SEC's reputation and commitment to its core mission.
Paul is perfect for the job. https://t.co/qOpcgRPaas
— MetaLawMan (@MetaLawMan) December 4, 2024
Regarding XRP, there are also pending applications for the RLUSD stablecoin, which will soon be launched on the XRP Ledger (XRPL) and Ethereum, as well as four US spot XRP ETFs. The new SEC chairman could also do wonders here, as Gary Gensler is on record calling anything other than Bitcoin a security.
Analysts say they expect a different alt season
The election of Mr. Trump and the appointment of Mr. Atkins as SEC commander are not only good for XRP, but of course all altcoins should also do well. But as CryptoQuant founder and CEO Ki Young Ju says, this alternative season may be a little different than what most investors are used to.
The analyst believes Bitcoin is now in a league of its own “through ETFs, MSTRs, funds, etc.”
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He believes BTC is “moving away from the crypto ecosystem,” adding that the correlation between BTC and altcoins that we're used to is a thing of the past. Furthermore, liquidity has dried up and only a few altcoins remain to rise. In this situation, only two options remain, says Ju.
There are currently two options for altcoins. Either create a paper-wrapped version like Bitcoin, or use stablecoins or BTC to build a real internet money ecosystem. Altcoin investors need to find a coin that can do one of two things and hold it for the long term.
Ki Young Ju, Founder and CEO of CryptoQuant
