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Gary Gensler’s departure has boosted the price of XRP.
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The end of the legal dispute between the SEC and XRP is being an incentive for the price to rise.
Ripple’s This increase allowed XRP to surpass BNB and Solana in market capitalization and is now top 4.
XRP is up 42% in the last week. Source: CoinGecko.
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But what is primarily driving this rise? Although the main one is the drag effect generated by Bitcoin during the last month for all altcoins, the possible outcome of the legal dispute that Ripple, the issuing company offaces the United States Securities and Exchange Commission (SEC), is one of the main factors that has raised optimism and demand for the Cryptocurrency.
For years, the SEC accused Ripple of violating securities law by issuing XRP without prior registration with the agency, arguing that it should be considered a security and, therefore, fall under its jurisdiction. This event plummeted the price of XRP at that time. However, a judge ruled in July 2023 that XRP could be considered a security in certain issuance cases, but not all. Although this ambiguity generated optimism in the market, It also left doubts about the future. The SEC appealed the decision, so the case will return to trial.
The price of Ripple grew steadily in the month of November. Source: CoinMarketCap.
Now, with the Trump’s arrival and the announcement of the resignation From Gary Gensler, current president of the SEC, as of January 20, expectations about a favorable regulatory future for XRP are on the rise.
Recently, former Chairman of the Commodity Futures Trading Commission (CFTC), Chris Giancarlo, stated that I would “bet” that the SEC will dismiss the lawsuit against Ripple. If this comes to fruition, we could see XRP break above $2 or even reach new highs above $3.
XRP EFT
If the lawsuit is eventually dismissed, the chances of approval for an XRP ETF increase, which would drive its price even higher. However, this would take until 2025.
For the moment, already there are four companies —Canary Capital, Bitwise, WisdomTree and 21Shares—those competing to be the first to issue an XRP ETF.
Although introducing an ETF to the market does not guarantee an immediate price impact, appears to have significant effects in the medium or long term. In the case of the Bitcoin ETF, its impact was considerable since its launch, but increased a month after the start of trading. For ETH, the wait was longer, as it began to show effects almost five months later. Recently, ETH ETFs even surpassed Bitcoin ETFs in trading volumes, according to Ethereum-superaron-bitcoin/” target=”_blank” rel=”noreferrer noopener”>reported CryptoNews.
Ripple growing
Another reason that allows XRP to project upwards in December is the growth of Ripple, its issuing company. Recently, we report that RLUSDRipple’s new stablecoin, would be about to be approved in the US as soon as next week.
The toss of this coin could have repercussions on XRPdespite not being directly related to each other, beyond being issued by the same company. Similar to how the issuance of USDT positively impacts Bitcoin, this stablecoin could generate a similar effect. However, until it is approved, we continue waiting.
From 75 points the indicator shows altseason. Source: Blockchain Center.
XRP could also benefit from the altseason, whose Altcoin Season Index indicator stands at 69 points. Once I reach 75, we would officially be in altseasona period in which altcoins tend to offer better returns than Bitcoin.
Given that XRP is the cryptocurrency that, so far, is performing best in the top 10 in capitalization, the arrival of the altseason would bring much more demand. This interest would end up being reflected in the price. However, this interest would be closely linked to the price of bitcoin, since this altseason would not be like the others.
Market analyst Willy Woo pointed out that the altseason will become increasingly weaker. The last one, which occurred in 2021, remained detached from the price of Bitcoin. However, this time, it is the drag effect of the cryptocurrency that is causing an altseason. Therefore, if the price of Bitcoin falls, you could also see the price of altcoins fall.
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