Important points
XRP's market capitalization exceeded $100 billion for the first time in more than six years. The price of XRP soared as the market became more optimistic following pro-crypto political developments.
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XRP's market capitalization surpassed $100 billion on Friday, reaching its highest level since January 2018 and overtaking BNB as the fifth-largest crypto asset by market capitalization, according to data from CoinGecko.
The token price has risen 18% in the past 24 hours to $1.8, and is up 22% for the week. XRP has risen 193% since the beginning of the year. The asset currently ranks behind Bitcoin, Ethereum, Tether, and Solana, with XRP's market cap at $101 billion, while SOL's market cap is around $114 billion.
After Donald Trump was elected president, XRP began an upward trend. President Trump's pro-crypto stance has raised hopes that the sector will grow during his second term. This sparked optimism among investors, leading to an overall rally in the market.
While Trump’s reelection will have a positive impact on XRP, its biggest gains are primarily related to SEC Chairman Gary Gensler’s resignation.
The token soared above $1 for the first time since November 2021 after Gensler hinted that he would resign, before surging 25% to $1.4 following his public announcement.
Gensler's resignation is seen as potentially a major turning point in Ripple's legal situation. Experts believe that ongoing SEC lawsuits against crypto companies, including Ripple, may be dismissed or settled.
Positive developments in the stablecoin roadmap, coupled with Ripple’s continued business expansion and increased institutional adoption, are fueling XRP’s price surge.
Asset managers such as Bitwise and Canary Capital are actively seeking SEC approval to launch XRP ETFs.
The blockchain company is expected to receive approval from the New York Department of Financial Services to launch the RLUSD stablecoin.
XRP bull market faces possible short-term correction
If the bulls continue to take control, XRP could reach $1.90 and even $2. However, CryptoQuant community analyst Maartunn warns that the recent price increase is mainly driven by leveraged trading, a factor that can cause large price fluctuations. There was a similar event in the past that resulted in a 17% correction.
🚨 $XRP Pumping occurs based on the lever principle.
Open interest has already increased by 37%. Be aware of volatility. The previous similar event resulted in a -17% drawdown.
Stay calm and manage your risks accordingly.#XRP #cipher #ripple #onchain #futures pic.twitter.com/Femb2xQKDH
— Maartun (@JA_Maartun) November 29, 2024
Additionally, XRP's Relative Strength Index (RSI) is currently at 89. An RSI above 70 indicates overbought conditions and suggests that the asset may be due for a decline.
Source: TradingView
However, it is important to note that during a strong bullish trend, the RSI can remain in overbought territory for a long time without resulting in a price correction. Traders are advised to manage their risks with caution as they may fluctuate in the short term.
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