- XRP has dropped 12%, with its price returning to US$2.26, as its market cap falls below Tether’s.
- ETH and BTC saw gains of 5% and 7%, respectively, amid a broader rotation from altcoins to these major cryptocurrencies.
- Positive developments, including the pro-crypto SEC chair nominee Paul Atkins, may influence a continued rally in XRP.
- Upcoming changes in the SEC could favour altcoins, yet Bitcoin is seen as increasingly distinct from other cryptocurrencies in the market.
After the impressive rally over the past four weeks or so, XRP is cooling down somewhat, dropping 10% on the daily timeframe.
With the price for one XRP back to US$2.26 (AU$3.51) its market cap has fallen just below that of Tether once again. Other altcoins including SOL, BNB and ADA also experienced drawdowns while ETH and BTC gained 5% and 7% respectively – with the latter finally breaking through the important US$100k barrier.
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Pav Hundal, Swyftx Lead Market Analyst, believes the outflows from alts into ETH and BTC are part of a rotation toward value, with traders expecting a continued Bitcoin rally.
He said the anticipation of $100k alone was “enough reason why traders and investors are rotating back to Bitcoin”.
XRP Rally to Continue, Based on Bullish SEC Development
Crypto analyst Dark Defender said the XRP correction was expected and they believe “side moves can last a little bit more”. Overall, though, they expect the rally to continue with immediate targets of US$2.92 (AU$4.54) and US$3.99 (AU$6.20) per coin.
Although traders may be rotating into ETH and BTC, XRP holders are celebrating several factors positively influencing XPR price. President-elect Donald Trump just announced the nomination of Paul Atkins for the position of the next chair of the US Securities and Exchange Commission (SEC).
Atkins, a veteran in US financial policy and former SEC Commissioner, is seen as a pro-crypto choice and what Trump called “a common-sense” nominee.
Crypto lawyer, James “MetaLawMan” Murphy, welcomed the nomination, saying that although there’s a lot of work to be done at the SEC, Atkins was the right person for the job, adding that he’s a “great guy with tremendous professional integrity”.
Regarding XRP, there’s also the RLUSD stablecoin that should soon be launched on the XRP Ledger (XRPL) and Ethereum, and the pending applications for four US Spot XRP ETFs. A new SEC chair could also work wonders here, as Gary Gensler is on the record for calling everything other than Bitcoin a security.
Expect a Different Altseason, Says Analyst
Trump’s election and an Atkins tenure at the helm of the SEC are not only good for XRP, naturally all altcoins should do well. However, as CryptoQuant founder and CEO, Ki Young Ju, puts it, this altseason could be a little bit different than what most investors are used to.
The analyst believes Bitcoin is now in a league of its own “through ETFs, MSTR, funds, and more”.
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He believes BTC is “drifting away from the crypto ecosystem”, adding that the BTC-altcoin correlation we are so used to is a thing of the past. Additionally, liquidity has dried up, leaving only a few altcoins to rally. This situation leaves the rest with two options, according to Ju:
Altcoins now have two options: create paper-wrapped versions like Bitcoin or build a real Internet money ecosystem using stablecoins or BTC. Altcoin investors should find a coin that can do one of the two and hold it long-term.
CryptoQuant founder and CEO, Ki Young Ju
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