Ripple’s XRP token has been relishing a favorable market climate, with a significant 25% surge following the announcement of SEC Chair Gensler’s forthcoming resignation. This upswing contributes to the altcoin’s previous strides, equating to a monthly return of 180%. However, the altcoin currently stands at approximately 50% below its all-time high which is pegged at $3.30.
This notable rally is an extension of a broader bullish trend that began to shape up post the U.S elections, which marked the return of Donald Trump to the Oval Office for a second term. Despite initially being a crypto skeptic, Trump has emerged as a proponent of the industry, committing to make the U.S the “crypto capital of the world” and establish a strategic reserve of Bitcoin. This has significantly stirred the crypto market, with anticipation building towards his inauguration on January 20, 2025.
In tandem, Bitcoin is on the brink of reaching the $100k mark, and altcoins are equally flourishing. Notably, Solana set a new all-time high above $263 on Friday, although it later receded to $256. Concurrently, Ethereum’s open interest reached a record high of $20.8 billion, surpassing its previous high of $17 billion in May.
XRP’s rally over the last 24 hours has been impressive, with the momentum showing no signs of abating. Market indicators for XRP suggest a strong buy signal for traders, although a short-term correction is not entirely off the table.
As per Coinglass, XRP’s open interest, like Ethereum, has also hit an all-time high today at $2.61 billion, following a 26% surge over the last 24 hours. Open interest represents the total value of outstanding derivative contracts, such as futures and options, that are currently active and yet to be settled. It serves as a crucial indicator of market sentiment. In the case of XRP, many traders seem to be predicting future price movements to capitalize on.
As the market sentiment currently leans towards bullish momentum, the possibility of a correction highlights the necessity for thorough risk management. However, the long-term outlook for XRP remains promisingly bullish.
Gensler’s impending departure opens a window for Ripple to arrive at a satisfactory settlement with the SEC. In anticipation, more asset managers are preparing to introduce XRP products to the stock market. The applications for spot XRP ETF lodged by Bitwise and Canary Capital are expected to be approved by the new SEC Chair. Additionally, global asset manager WisdomTree announced the launch of a similar product for the European market earlier today.
Crypto analyst Ali Martinez views Gensler’s resignation as a boon for XRP, marking $2 as the next price target for the altcoin. This sentiment is echoed by CrediBULL Crypto, who suggests that XRP may hit a new all-time high after reaching the $2 level.
As the seat for the next SEC Chair will soon be vacant, several names have been circulating as potential candidates. Among the favorites are SEC commissioner Hester Peirce, known as “Crypto Mom” for her support of the industry, and pro-crypto SEC commissioner Mark Uyeda. Reuters also lists former SEC commissioner Paul Atkins and Robert Stebbins, a partner at law firm Willkie Farr & Gallagher, as likely candidates. However, Robinhood CLO Dan Gallagher, previously a top contender for the role, has recently withdrawn his name from consideration.
