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“Amazing”, that is the right keyword to describe the rise that Ripple (XRP) is experiencing right now.
While the BTC price stabilizes below USD 96,000, the XRP price is trading at USD 2.42, with daily gains of 33%, weekly gains of 77.6% and monthly profits of 400%.
The rally has led this Cryptocurrency to surpass the market capitalization of Solana and USDT. Now this cryptocurrency is the third largest crypto project in terms of market capitalization.
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As if that were not enough, XRP price has reached six-year highs while trading at current levels (The last time we saw these ranges was in December 2018).
What is driving the price of XRP higher?
We must keep in mind that this cryptocurrency has been rising since Donald Trump’s victory in the presidential elections. After years of fighting US regulators, investors see a definitive end to this legal dispute with the arrival of the Trump administration.
A recent factor driving XRP is the news that the New York Department of Financial Services notified the approval of the commercialization of the RLUSD stablecoinwhich will be released on December 4.
This information was shared by Fox Business on November 29 and predicts Ripple’s entry into the stablecoin market with RLUSD.
We can also say that all the conditions are in place for a rebound in XRP, because while BTC stabilizes at current levels, it makes room for other cryptocurrencies like this one to register significant increases.
«XRP currently represents 73% of BTC 24-hour volume. Brutal”.
XRP Chart Analysis: Key Levels to Watch
From the charts we see that XRP’s strong rally started on November 10 and recently peaked at $2,499, which now represents major resistance.
Analysis of XRP charts. Source: TradingView.
As Ripple continues to ascend, it is likely to hit hurdles before reaching its all-time high at $3.30. One of them could be found at the line of 2.80 USD and later 3 USD.
Traders should watch these levels closely to avoid surprises with sudden pullbacks. To do this, they should closely monitor the following support levels:
First, $2.22, the loss of which would mean the end of the daily momentum. Secondly, the $2 level, a key support level that if lost would take the price as low as $1.7 or the 50 EMA.
The decline to this last support is feasible and investors should note that all buyers for six years are in profitso they must prepare for corrections from current levels.
The current RSI at 77 points can be interpreted as a sign that the price is close to overbought. So, again, users should prepare for major setbacks.
When XRP was the second largest cryptocurrency
It is worth noting that six years ago (2018) XRP was catapulted as the second largest cryptocurrency in terms of market capitalization and was only surpassed by BTC.
However, its positioning was affected in December 2020, due to the US SEC suing Ripple for selling XRP as unregistered securities.
In this way, XRP lost its status, falling in the ranking of the largest cryptocurrencies. Thus, investor confidence declined and subsequently many other cryptocurrencies were affected by demands from the regulatory body.
The legal dispute began to see its end when in July 2023 a ruling by Judge Analisa Torres concluded that the initial sales of XRP did not constitute securities.
Today, although the legal fight is not completely over, we see an end, not only for the SEC’s lawsuit against Ripple, but for the strong regulatory raid that this body has carried out for years on various cryptographic projects.
With a possible Trump administration favorable to cryptocurrencies and XRP erected as a sign of fight against regulatory entities, the long-term outlook looks favorable.
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