- XRP is riding the bullish wave in the broader market with a multi-year price surge.
- With elevated Open Interest, projections of return to ATH remains high.
Ripple Labs Inc’s associated XRP coin recently hit a new milestone, with the price reaching the highest level recorded in three years. Many attribute the recent surge to the broader market gains from anticipation of a political shift in the US blockchain ecosystem.
XRP Benefits From Trump’s Victory
The price of XRP continues on an upward momentum despite losing 16% of its Saturday peak of $1.20. As of this writing, XRP’s price was trading at $1.12, up 7.24% in the last 24 hours, per market cap data. The coin has rallied by 90.5% in the past week and 105.86% within the last 30 days. The market capitalization rose to $63.69 billion; thus, XRP now ranks sixth-biggest cryptocurrency.
XRP’s ongoing bullish performance follows Donald Trump’s victory at the US Presidential elections held on November 5. The news helped strengthen investors’ confidence in cryptocurrencies, including memecoins. Memecoins still lead the market rally in terms of total performance and relative gains for mid-cap coins.
Also, XRP, which traded at the $0.5 level for months, suddenly broke out above $0.95. As reported by CNF, the surge in XRP comes amid speculation that SEC Chair Gary Gensler may resign after Trump’s inauguration on January 20. Crypto market participants have often criticized Gensler for his harsh stance towards crypto regulation. Gensler has played a key role in the Ripple vs. SEC lawsuit, and his departure could drastically alter the regulatory landscape.
The SEC lawsuit in December 2020 alleged that Ripple Labs and its founders sold XRP to investors as securities. In July 2023, US federal judge Analisa Torres ruled that XRP is not a security when sold to retail investors on secondary exchanges. However, the Judge decided that XRP sold to institutional investors violated securities laws and thus fined the firm $125 million.
The SEC has since appealed this decision, and the deadline for the agency’s final briefings is now set for January 2025. With Gensler’s potential departure, XRP could see a more straightforward path regarding its classification as a security.
This could also increase prospects for approving a spot XRP ETF in the US.
XRP Futures Open Interest Skyrockets
Alongside XRP’s recent price spike, futures Open Interest (OI) reached record heights above $2 billion, per CoinGlass data. OI measures the number of outstanding futures or options contracts that remain open.
A high OI indicates increased speculative trading as traders bet on future price fluctuations. This can contribute to increased volatility as leveraged positions magnify reactions to market news.
Analysts claim the recent spike in XRP futures Open Interest to record levels suggests a rise in trading activity, which is often an indicator of market bullishness. If momentum continues, some believe XRP could edge closer to its all-time high of $3.30.
