- One of the blockchain’s most popular and long-standing projects, XRP, has endured a rough few years following the SEC’s legal battle against the cryptocurrency.
- However, with a new era of regulation coming, the crypto market has fought back and XRP has finally returned to a price range of above US $1.
- The project has experienced gains of close to 200% throughout the past month.
- Although this trend is likely unsustainable, XRP’s price action is showing positive signs for the first time in a long time.
Is XRP back?
The short answer – yes.
The global payments network is one of the crypto market’s oldest projects, having been founded over a decade ago in 2012. Despite its long history and immense popularity, XRP has struggled to capture the attention of investors since its peak in 2018 – until now.
Related: Gary Gensler Resigns as SEC Chair, Chris Giancarlo, Ex-CFTC Chair for Crypto Czar?
New SEC Administration Could See Legal Battle with XRP Resolved
Several factors are behind XRP’s resurgence to over US $1 (AU $1.53), with none bigger than the election victory of Donald Trump in the United States.
Most coins have benefitted from the Republican win early in November, with Trump building much of his election campaign on pro-crypto policy and removing tough regulations implemented by the SEC.
However, XRP has been particularly stifled by the US financial regulator’s “regulation by enforcement” strategy and remains part of an ongoing court case that’s stretched out for years.
So, news that Trump’s administration will replace Gary Gensler as SEC Chair with a new, pro-crypto candidate, could see cases like XRP’s come to a swift resolution.
And the market hasn’t looked back since.
XRP Slows Down After Hitting 200% Gains
XRP has tripled in price since last month, with the coin delivering impressive gains of 183% despite a recent dip.
At its current growth rate, a market cap of over US $100b (AU $153b) seems inevitable for XRP, especially once Gary Gensler’s replacement is confirmed.
However, not everybody is as bullish on XRP’s future. Some market data is suggesting sentiment is starting to ever-so-slightly sour, with open interest falling and short (bearish) contracts starting to outpace long (bullish) contracts.
Following a meteoric price rise, a market cool-off isn’t necessarily a bad thing. It could give time for XRP to consolidate before the regulatory environment in the US becomes clearer upon Trump’s inauguration in January.
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