XRP outperforms crypto market with a 17% pump — What’s driving the rally?
2024.11.15 15:08
XRP jumped 17% over the last 24 hours, outperforming the rest of the crypto market as the rally cooled off.
Data from Cointelegraph Markets Pro and TradingView shows XRP rose from a low of $0.6833 on Nov. 14, climbing as much as 24% to a sixteen-month high of $0.8479.
In comparison, the total crypto market capitalization was down, posting 2.8% daily losses to $2.91 at the time of publication. Bitcoin (BTC) had dropped 4% while Ether (ETH) was down 6% over the same timeframe.
XRP/USD daily chart. Source: TradingView
What are the factors behind XRP’s latest bullish momentum?
Shifting US regulatory climate supports XRP price growth
XRP traded at $0.7955 on Nov. 15 extending the weekly gains to 50%, reaching levels last seen on June 19, 2023. The rally came as 18 US states filed a suit against the Securities and Exchange Commission (SEC) and its commissioners, including chairman Gary Gensler, for “unconstitutional overreach” of the crypto industry.
The plaintiffs include Nebraska, Tennessee, Wyoming, Kentucky, West Virginia, Iowa, Texas, Mississippi, Ohio, Montana and others.
This comes on the heels of a statement by Gensler “suggesting that he could be leaving” the agency, according to The Kobeissi Letter.
Source: The Kobeissi Letter
The lawsuit also alleges that the SEC has infringed upon states’ rights to regulate their economies.
The suit comes amid increasing speculative optimism in the crypto community that a crypto-friendly business environment under Trump’s administration could benefit tokens linked to US-based companies, such as Ripple Labs (the company behind XRP) and Uniswap (UNI), boosting their value in the long run.
Increasing open interest backs XRP price recovery
The surge in XRP’s price on Nov. 15 comes after a sharp rise in its open interest (OI).
Open interest is a key metric that traders and analysts use to assess market sentiment and anticipate future price movements.
XRP’s OI rose to $1.3 on Nov. 15, about 20% higher than the $1.1 billion recorded a day prior, according to CoinGlass data.
XRP open interest across all exchanges. Source: CoinGlass
High open interest simply indicates that the current market trend driving the underlying price is strong, pointing to investor confidence that the trend will continue.
Related: Price analysis 11/13: BTC, ETH, SOL, BNB, DOGE, XRP, ADA, SHIB, TON, AVAX
XRP price seeks to end a multiyear downtrend
Several crypto traders said they expect XRP to build on the current momentum to initiate a sustained recovery, setting double-digit price targets for the token.
Independent analyst Egrag Crypto believes that a crypto-friendly and clear regulatory environment could propel XRP to a price of around $11, representing a 40X increase from its cycle low of $0.28.
“In the last cycle, despite the #SEC lawsuit, #XRP pulled off an impressive 20X surge,” the analyst explained in an analysis on X, adding:
“Now, with unbeatable regulatory clarity, could we be looking at a 40X or even 50X boom?”
Crypto technical analyst Mikybull Crypto shared a chart showing the XRP price breaking above a 3-year descending trendline, with $0.85 and $1.10 being key resistance levels to watch while writing:
“Massive rally incoming.”
The multiyear descending trend line at $0.6163, embraced by the 200-week simple moving average (SMA), is acting as immediate support for XRP price.
The moving average convergence divergence (MACD) indicator has just produced a bullish signal. This happened when the MACD line (blue) crossed above the signal line (orange) during the week ending Nov. 8, suggesting that market conditions had flipped in favor of the upside.
XRP/USD weekly chart. Source: TradingView
It is worth noting that XRP’s latest rally has seen it flip key levels into support, including the 100-week and 50-week SMAs at $0.5278 and $0.5573, respectively. Increased buying from these buyer congestion zones will likely push XRP price higher, with $1 representing the short-term target for the bulls.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
