Investors are cheering Donald Trump’s recent victory in the United States, and the impact it will have on regulation. On Wednesday morning the XRP token traded at $1.08655, up 180% since its low in October.
Ripple Soars On Regulation Hope
Gary Gensler, the former head of Securities and Exchange Commission SEC (SEC), has taken a regulatory approach that is causing the XRP to be under price pressure.
Gensler, a company that specializes in regulating crypto industries, has been using the courts to do so for the last four years. They have filed lawsuits against Ripple, Uniswap Coinbase and Kraken.
Since then, the SEC has continued to pursue Ripple. Ripple was able to win in part because the judge ruled XRP wasn’t an illegal security. It also got a fine of $250 million, which is lower than $2 billion demanded by the SEC.
Recenty, however, SEC appealed this ruling, increasing pressure on Ripple. The XRP has risen as investors expect that Trump will make the cryptocurrency industry more favourable.
Trump promised that he would be more crypto-friendly, as his recent nominations show. Howard Lutnick, for example, is the new head of Commerce Department. Lutnick has previously expressed support for cryptocurrency. He is the CEO of Cantor.
Elon Musk, Vivek Ramaswamy and others have been selected to head the Department of Government Efficiency. Both have previously been vocal supporters of cryptocurrency.
Analysts believe the Securities and Exchange Commission (SEC) will become more favorable to industry. The agency is expected to end all litigation, even on Ripple.
Analysts also believe that companies may apply to create a spot ETF for XRP as early as January. This would be logical, as XRP has been around for a long time and is a prominent coin in the market.
XRP has also risen in price as investors look forward to Ripple’s stablecoin, RLUSD. This coin will have a 1:1 dollar-to-Ripple ratio. It is unclear whether or not the stablecoin is going to be a success.
Tether, which has assets worth $130 billion, is the leader in this highly competitive industry. There are also signs that the XRP Ledger network isn’t a success, as Base and Sui have been able to compete with it.
Price forecast for XRP
TradingView – XRP Chart
This week, the weekly chart shows a bullish breakout in Ripple’s price. The coin had been stuck at the $0.60 mark for several months before this rebound. The coin has moved past the resistance level of $0.9375. This was its biggest swing last July. The move above that level invalidated the head-and-shoulders pattern.
The XRP token is most notable for having moved past the psychological $1 level. The XRP token has also surpassed the Exponential Moving Averages (EMA) of 50 and 200 weeks, indicating that bulls have taken control.
The ripple price also rose above 50% Fibonacci retracement and Ichimoku clouds, while MVRV has reached a value of 2.8. This is a sign that there’s more potential for the coin.
If the price of XRP surges over last week’s $1.2698 high, then more gains are likely to occur. This will increase the chances of the coin reaching the high for the entire year of $1.9712 which is approximately 85% higher than the current price. The bullish outlook will be invalidated if the coin drops below $0.9375.
The post XRP Price Losing Momentum: Can Ripple Still Surge to $1? This post may change as new information unfolds
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