XRP:The Cryptocurrency Leading the Post-Election Rally in the US
Aktualisiert
Since Donald Trump won the US election, cryptocurrencies have experienced a remarkable rally. Within this boom, XRP (Ticker AT: XRPUSD), the token of the company Ripple, stands out as one of the most benefited, with a revaluation of 137.97% since the elections, surpassing even Bitcoin, which advanced 36% in the same period.
What is XRP?
XRP is a cryptocurrency designed to facilitate fast and low-cost international transfers between digital assets and Fiat money. It uses a decentralized network that allows transactions in a matter of seconds, compared to the lengthy times and high costs of the traditional financial system. This feature makes XRP especially relevant in the global transaction arena, positioning it as an innovative tool in the financial sector.
Ripple, the company behind XRP, has been embroiled in legal proceedings with the U.S. Securities and Exchange Commission (SEC) for years. Although an initial ruling determined that XRP was not a security under certain conditions, the SEC has appealed, maintaining uncertainty about its regulatory future.
Factors behind its recent rise
Donald Trump's victory has boosted the positive perception towards digital assets. His promise to create a strategic reserve of bitcoins and foster a favorable environment for cryptocurrencies has generated optimism. Also, the possible change in the SEC leadership could soften regulatory policies towards this sector. I had already been reporting that I wanted to fire Gary Gensler, the SEC director selected by the Biden administration and absolutely aggressive in his regulation of cryptos. Gensler took over 100 actions against crypto companies during his tenure at the helm of the commission. This would not oust him but rather relegate him to the grade of independent agency commissioner, given that the chairman has no such firing power. Basically Gensler has pushed the industry in the direction of regulatory compliance, even though not all of these have been to everyone's liking.
Another key factor has been the recent application by 21Shares to launch an XRP ETF, a move that could increase institutional adoption and consolidate its position in the market. It is also important to highlight that Trump in his victory stated that he wants to create a Bitcoin Strategic Reserve to pay off government debt and it would not be unusual for this to happen with El Salvador being the first case study of a country that has implemented such a state reserve. This could boost companies like MicroStrategy as CryptoFans say: “To The Moon”, and already this firm has skyrocketed its share price since the rise of the Bitcoin price to over 90 thousand USD.
Evolution and outlook
From $0.37-0.50 before the election, XRP has reached $1.1813 as of today, overcoming key resistances it had not managed to break since 2021 and July 2023. Although still far from its all-time high of $1.96, this growth reflects an increase in investor confidence. As reported by Bank of America, this increased confidence has been accompanied by a $6 billion flow into cryptocurrencies.
If expectations of a more favorable regulatory environment come to fruition, XRP could continue its uptrend. Moreover, the approval of the XRP ETF would be an additional catalyst to attract institutional capital. However, developments in the court case with the SEC remain a risk factor to consider. It is very likely that Trump will select someone to regulate in favor of the evolution of these types of systems on the Blockchain.
Technical Aspect
Although everything seems to be flowers and gifts for the market with a very bullish trend, if we look at the RSI is oversold at 89.04 this only confirms this increased market confidence. The Checkpoint has long been located at 0.52 so it is very pronounced the current difference, it is clear that looking at the BTCUSD chart this increase is highly correlated. On the 12th of this month a golden crossover was outlined which has currently expanded its price, although the delta zones marked a very strong bearish zone at 0.8482 it was pierced on the 15th with a lot of force and currently the bullish volume presses more strongly than the bearish so it would not be unusual for XRP to continue pushing up to its previous resistance zone in the area of $ 1.40.
Conclusion
XRP is emerging as one of the most promising cryptocurrencies in the current political and economic environment. Its focus on international transaction efficiency and its resilience in the face of regulatory challenges have captured the attention of investors. If expectations of deregulation in the U.S. materialize and its legal issues are resolved, XRP could cement itself as a key asset in the crypto ecosystem.
At ActivTrades, we closely follow the evolution of XRP and its impact on financial markets.
Ion Jauregui - ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
What is XRP?
XRP is a cryptocurrency designed to facilitate fast and low-cost international transfers between digital assets and Fiat money. It uses a decentralized network that allows transactions in a matter of seconds, compared to the lengthy times and high costs of the traditional financial system. This feature makes XRP especially relevant in the global transaction arena, positioning it as an innovative tool in the financial sector.
Ripple, the company behind XRP, has been embroiled in legal proceedings with the U.S. Securities and Exchange Commission (SEC) for years. Although an initial ruling determined that XRP was not a security under certain conditions, the SEC has appealed, maintaining uncertainty about its regulatory future.
Factors behind its recent rise
Donald Trump's victory has boosted the positive perception towards digital assets. His promise to create a strategic reserve of bitcoins and foster a favorable environment for cryptocurrencies has generated optimism. Also, the possible change in the SEC leadership could soften regulatory policies towards this sector. I had already been reporting that I wanted to fire Gary Gensler, the SEC director selected by the Biden administration and absolutely aggressive in his regulation of cryptos. Gensler took over 100 actions against crypto companies during his tenure at the helm of the commission. This would not oust him but rather relegate him to the grade of independent agency commissioner, given that the chairman has no such firing power. Basically Gensler has pushed the industry in the direction of regulatory compliance, even though not all of these have been to everyone's liking.
Another key factor has been the recent application by 21Shares to launch an XRP ETF, a move that could increase institutional adoption and consolidate its position in the market. It is also important to highlight that Trump in his victory stated that he wants to create a Bitcoin Strategic Reserve to pay off government debt and it would not be unusual for this to happen with El Salvador being the first case study of a country that has implemented such a state reserve. This could boost companies like MicroStrategy as CryptoFans say: “To The Moon”, and already this firm has skyrocketed its share price since the rise of the Bitcoin price to over 90 thousand USD.
Evolution and outlook
From $0.37-0.50 before the election, XRP has reached $1.1813 as of today, overcoming key resistances it had not managed to break since 2021 and July 2023. Although still far from its all-time high of $1.96, this growth reflects an increase in investor confidence. As reported by Bank of America, this increased confidence has been accompanied by a $6 billion flow into cryptocurrencies.
If expectations of a more favorable regulatory environment come to fruition, XRP could continue its uptrend. Moreover, the approval of the XRP ETF would be an additional catalyst to attract institutional capital. However, developments in the court case with the SEC remain a risk factor to consider. It is very likely that Trump will select someone to regulate in favor of the evolution of these types of systems on the Blockchain.
Technical Aspect
Although everything seems to be flowers and gifts for the market with a very bullish trend, if we look at the RSI is oversold at 89.04 this only confirms this increased market confidence. The Checkpoint has long been located at 0.52 so it is very pronounced the current difference, it is clear that looking at the BTCUSD chart this increase is highly correlated. On the 12th of this month a golden crossover was outlined which has currently expanded its price, although the delta zones marked a very strong bearish zone at 0.8482 it was pierced on the 15th with a lot of force and currently the bullish volume presses more strongly than the bearish so it would not be unusual for XRP to continue pushing up to its previous resistance zone in the area of $ 1.40.
Conclusion
XRP is emerging as one of the most promising cryptocurrencies in the current political and economic environment. Its focus on international transaction efficiency and its resilience in the face of regulatory challenges have captured the attention of investors. If expectations of deregulation in the U.S. materialize and its legal issues are resolved, XRP could cement itself as a key asset in the crypto ecosystem.
At ActivTrades, we closely follow the evolution of XRP and its impact on financial markets.
Ion Jauregui - ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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