XRP has reached a market capitalization of $100 billion for the first time since 2018.

By Crypto Gloom On Dec 1, 2024

Key Takeaways

XRP’s market capitalization exceeded $100 billion for the first time in six years.
The price of XRP has surged due to market optimism following political developments in support of the cryptocurrency.

XRP’s market capitalization surpassed $100 billion on Friday, reaching its highest level since January 2018 and surpassing BNB to become the fifth-largest cryptocurrency asset by market value, according to CoinGecko data.

The token price has risen 18% in the last 24 hours to $1.8, with a weekly gain of 22%. XRP is up 193% since the beginning of the year. Currently, the asset trails only Bitcoin, Ethereum, Tether, and Solana, with SOL’s market cap being around $114 billion compared to XRP’s $101 billion.

XRP began its upward trend after Donald Trump was elected president. Trump’s stance in support of cryptocurrencies raises hopes that the sector will flourish during his second term. This instilled optimism among investors and led to a market-wide rally.

Trump’s re-election has a positive impact on XRP, but XRP’s biggest gains are primarily related to the resignation of SEC Chairman Gary Gensler.

The token topped $1 for the first time since November 2021 after Gensler hinted at his resignation, and then surged 25% to $1.4 following his official announcement.

Gensler’s resignation appears to be a potential turning point in Ripple’s legal situation. Experts believe that ongoing SEC lawsuits against cryptocurrency companies, including Ripple, could be dismissed or resolved.

Along with Ripple’s continued business expansion and increased institutional adoption, positive developments in its stablecoin roadmap are also fueling XRP’s price surge.

Asset managers such as Bitwise and Canary Capital are actively seeking SEC approval to launch an XRP ETF.

The blockchain company is expected to obtain approval from the New York Department of Financial Services to launch the RLUSD stablecoin.

XRP’s strength faces a potential short-term correction.

If the bulls continue to take charge, XRP could reach $1.90 or even $2. However, CryptoQuant community analyst Maartunn warns that recent price increases have been primarily driven by leveraged trading, a factor that can lead to significant price fluctuations. Similar incidents have caused a 17% correction in the past.

🚨 $XRP Experience a leverage driven pump!

Open interest is already up 37%. Beware of volatility. The last similar event resulted in a -17% drop.

Stay sharp and manage your risks accordingly.#XRP #Cryptocurrency #ripple #onchain #gift pic.twitter.com/Femb2xQKDH

— Maartun (@JA_Maartun) November 29, 2024

Additionally, XRP’s Relative Strength Index (RSI) is currently at 89. An RSI above 70 indicates overbought conditions and suggests the asset may fall.

However, it is important to note that RSI can remain in overbought territory for extended periods of time without a price correction during a strong bullish trend. Traders are advised to exercise caution and manage risk due to the potential for short-term volatility.