- XRP’s recent rally from US$0.5 to over US$2.50 has caught many off-guard; however, viewing the monthly chart reveals a steady 400% increase post-Trump’s election.
- Trump’s pro-crypto stance and potential changes at the SEC are most likely behind the XRP rally.
- Analyst Miles Deutscher suggests the next gains could come from utility coins like AI projects and DePIN.
XRP has caught many off-guard with its recent rally from US$0.50 (AU$0.77) to just over US$2.50 (AU$3.87) at present. But to be fair it’s all about perspective and depends on how you look at the rally.
If you look at XRP’s all-time chart, like Australian crypto analyst Miles Deutscher did in his tweet here, you may get the impression that this came out of nowhere and that it’s one big surprise.
Slow and Steady XRP Went Higher and Higher
Zoom out a little, to the monthly chart, and you can see it has been a steady climb for XRP, with a 400% increase since Donald Trump’s election. The reasons for the bullish crypto market are quite clear: Trump has been outspokenly pro-crypto, and it’s expected that Gary Gensler’s reign at the US Securities and Exchange Commission (SEC) may come to an end soon.
Related: XRP Rallies 90% in Past Week, Solidifies Third Spot With $154 Billion Market Cap
Trump also promised a Bitcoin reserve; a significant move that should not be underestimated. If the United States would actually buy Bitcoin to hold as treasury asset, that would certainly influence the long-term price trajectory of BTC, and could potentially see countries around the globe FOMOing into buying Bitcoin, perhaps setting off a bull run like no other.
Brazil, for example, has already announced plans for a national Bitcoin reserve.
Apart from a reserve – as big an impact it may have – Trump’s second term was always likely to be more impactful on altcoins than on Bitcoin. After all, Bitcoin has legal clarity and is the only crypto asset that does, apart from maybe Ethereum and of course XRP.
So, you can sort of see why XRP has been rallying for over a month now. Much of this is based on the legal worries for Ripple most likely disappearing into thin air. Although nothing is certain yet, as a pro crypto contender for SEC chair, Paul Atkins, is rumoured to potentially shy away from the job.
This is The Next Big Gainer, Says Deutscher
So, what to do if you’ve missed the XRP rally?
Apart from memecoins, Deutscher believes the coming best-performers could be coins that have utility, such as AI-related projects and DePIN (decentralised physical infrastructure network).
Related: Chainlink Flies on Collaboration With Europe’s First Tokenised Securities Trading System
Some of the coins on the analyst’s radar are CHEX, LINK, Arweave and AIOZ, although he doesn’t recommend doing too many rotations, as chasing shiny objects and the latest trend can lead to over-trading. So, instead, the analyst recommends holding “quality stuff”.
And of course, as always, it’s crucial to do your own research. Deutscher revealed in another post that he personally also started rotating into stablecoins.
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