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- XRP is reported to be poised for an explosive run due to six main factors, including the recent approval of the RLUSD and Donald Trump’s re-election.
- Another catalyst for a potential surge is the significant increase in daily transactions on the XRP Ledger.
XRP has currently reclaimed its position as the third largest crypto by market cap after hitting $145 billion in valuation to overtake the largest stablecoin in the world, USDT. According to our market data, the asset is trading at $2.5, a position which is marginally lower than its yearly high of $2.8. However, analysts believe that it could reach an unprecedented height in the next few months. Analyzing a comprehensive compilation of the bullish catalysts that could fuel an unprecedented XRP growth, CNF took note of six main factors.
The Technicals of XRP
XRP declined from its yearly high to a little over $1.90 as the broad market consolidated from high levels of liquidations. On December 17, XRP took a rebound to $2.7 from what chief strategist at crypto asset manager Bitwise Jeff Park labeled as “one of the most violent liquidations we’ve had in the altcoin universe.” During the rebound, XRP’s simple and exponential moving averages across the various periods showed a massive bullish momentum, hinting at an impending explosive run.
RLUSD Officially Listed on Exchanges
As we reported earlier, Ripple’s stablecoin RLUSD recently received the regulatory green light from the New York state financial regulator, the Department of Financial Services. Soon after its listing on major exchanges, the price of XRP surged by 11%, jumping from $2.38 to over $2.47 in a few minutes.
Daily Transactions on XRP Ledger
According to data, the total number of payments from one account to the other increased from 0.73 million daily on September 17 to 1.4 million on December 16. In three months, payment volume in XRP tokens also increased from 762 million to 1.99 billion. According to analysts, this signifies improved engagement on the network, which could be a catalyst for long-term price appreciation.
Trump’s Re-Election and Gary Gensler’s Step Down
Days after Donald Trump was re-elected as president, Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), announced that he would step down on January 20, 2025.
According to multiple reports, former Commissioner of the Agency Paul Atkins has been appointed to take over. With this, experts have hinted that the SEC could either settle or withdraw the lawsuits against crypto firms, including Ripple. Meanwhile, Ripple Chief Legal Officer Stuart Alderoty disclosed that its defense against the Agency in court provided the blueprint to defeat Gary Gensler’s war on crypto.
Ripple’s Strong Business Model
Ripple’s incredible maintenance of SaaS products is reported to be good for business. According to digital asset researcher Anderson, Ripple exists as a secret weapon of the US due to its:
- Possession of roughly 45% of all XRP in circulation.
- Potential expansion of the USD usage by the RLUSD, especially for financial institutions and enterprises.
- Trump’s recent assurance to favor US-based crypto companies.
- Its creation of the next-generation B2B cross-border payments system.
The Macro Cycles of the Dollar and Bitcoin
The dollar is currently reported to be in the inflationary cycle. Meanwhile, the halving event of Bitcoin has positioned it at a historical 12 to 18-month bullish price adjustment phase. This is expected to have a drop-down effect on XRP as Ripple investor Vincent Van Code predicts that the asset could hit $5 by February 2025.
