XRP experienced a notable surge of over 20% on Friday, outperforming leading digital assets such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). This increase has propelled XRP to become the fifth-largest cryptocurrency by market capitalization, now exceeding $107 billion.
As of the latest trading data, XRP is priced at $1.87, reflecting a remarkable 99% increase over the past two weeks. This performance has allowed XRP to surpass Binance Coin (BNB) in market capitalization, signaling a resurgence of investor interest.
XRP Breaks Free From Three-Year Stagnation
The recent rally marks a significant turnaround for XRP, which had been consolidating between $0.30 and $0.60 for nearly three years.
This period of stagnation was largely attributed to the end of the 2021 bull run and the ongoing legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC).
The SEC’s classification of XRP as an “unregistered security” has created substantial uncertainty for investors, particularly in the US, which has impacted the token’s market performance.
However, recent political developments in the United States have contributed to a renewed sense of confidence among crypto investors.
Following Donald Trump’s victory on November 5, where he defeated current Vice President Kamala Harris, the cryptocurrency market saw a significant recovery. Bitcoin, in particular, reached a new all-time high of $99,540, leading this resurgence.
Trump’s election promises to overhaul regulatory frameworks, including the dismissal of SEC Chair Gary Gensler on his first day in office, have further fueled optimism.
Gensler has his departure from the agency effective January 20, coinciding with the presidential inauguration, raising hopes that the protracted legal dispute between Ripple and the SEC may soon be resolved.
This potential resolution could pave the way for increased investment in XRP and the introduction of new investment products, such as exchange-traded funds (ETFs) focused on the token, with several asset managers having already filed applications.
New Price Targets And Support Levels
In terms of technical analysis, crypto analyst DarkDefender has noted that XRP has successfully broken through a critical resistance level at $1.44.
With the recent uptrend recorded for the fifth largest token on the market, DarkDefender new targets for XRP, including $3.4176 and $11.3233, while also revisiting historical targets of $5.85 and $18.22. Furthermore, the analyst highlighted new support levels at $1.44, $1.28, $1.14, and $1.03.
The 4-hour chart a new market structure for XRP, with expectations of touching $2.13 before any potential corrections. New resistance levels are identified at $4.11 and $6.42 within this timeframe, aligning with the main target of $5.85 following the anticipated move above $1.88.
Featured image from DALL-E, chart from TradingView.com
