In a single month, it rose by 400%. Can XRP still be bought?

Author: Socra, Golden Finance

On December 2, XRP's market capitalization surpassed USDT and Solana, ranking third in the cryptocurrency market capitalization list, and even surpassed Pinduoduo, rising to the 138th position among global mainstream assets.

With XRP's price breaking through $2, it has successfully set a new high since April 2021. Just before XRP's surge, Ripple CEO stated that the Trump administration brought new hope to the cryptocurrency industry, and XRP might see a turning point. What surprised many investors was how quickly and sharply this turning point came, with XRP's price increasing by 400% in the past month. However, with such a high increase, is it still possible to get into XRP now?

1. XRP Blossoms Again

At the beginning of November this year, XRP's price hovered around $0.5. However, after Ripple's CEO stated on November 10 that Trump might bring a turning point for XRP, the price of XRP truly soared.

According to CoinMarketcap data, as of the time of writing, XRP has risen from about $0.5 to around $2.5, with a staggering increase of 400% in nearly a month.

After reaching a peak of $1.966 during the bull market in April 2021, XRP has continuously declined for the past three and a half years, with the lowest point dropping to $0.287.

The soaring price of XRP has also led to a significant increase in market capitalization, surpassing USDT and Solana with a market cap of nearly $140 billion, ranking third in the cryptocurrency market capitalization list, and even surpassing Pinduoduo and Mitsubishi UFJ Financial Group in traditional enterprises, rising to the 136th position among global mainstream assets.

Additionally, data shows that XRP's trading volume is active across major exchanges. On the South Korean exchange Upbit, the 24-hour spot trading volume of XRP/KRW reached $3.8 billion, which is 11 times its BTC trading volume, exceeding Binance's XRP spot trading volume; on Bithumb, the 24-hour spot trading volume of XRP/KRW reached $1.2 billion, accounting for 32% of its total trading volume.

Moreover, xrpscan data also shows that the number of active XRP accounts grew by 100% in November, with on-chain indicators showing positive signs of recovery. The number of active accounts or unique senders on the XRP network increased from 15,592 on November 1 to 47,044 on November 16. The total number of active accounts in November doubled (increased by 100%) from around 12,000 to 25,000 this month, and the number of newly activated accounts on the XRP ledger in November also significantly increased, indicating a large influx of new users into the network.

Regarding XRP's performance, Ripple's CEO seemed to have anticipated it. He stated as early as the beginning of November that the Trump administration might bring new hope to the cryptocurrency industry, and XRP might see a turning point.

He explained that the Trump administration might change cryptocurrency regulations and resolve Ripple's years-long legal disputes. He mentioned that since the SEC sued Ripple, XRP has faced many setbacks, but as unfavorable market factors fade, the situation is changing, and XRP's future prospects are becoming broader.

2. Multiple Positive Factors

1. Expectations of Policy Easing

The optimistic expectations for favorable cryptocurrency policies after Trump's administration continue to bring confidence to the cryptocurrency industry, and Ripple's CEO also mentioned that Trump might resolve Ripple's years-long legal disputes.

Subsequently, news revealed that Trump might meet with Ripple's CEO and other representatives from the cryptocurrency industry to discuss the formulation of U.S. cryptocurrency policy.

Companies like Ripple are vying for a seat on the cryptocurrency committee promised by Trump, seeking to have a voice in his planned U.S. policy reforms.

A former CFTC chairman also predicted that the SEC would drop its lawsuit against Ripple, indicating that a regulatory shift could trigger a significant rise in XRP.

2. Expectations for XRP ETF Launch and Financial Product Listings

Ripple's CEO stated that an XRP ETF is destined to be launched.

Bloomberg ETF analysts pointed out that XRP and other altcoin ETFs might need to be approved by the end of 2025, and the new SEC leadership in 2025 may be more friendly toward cryptocurrencies, potentially allowing ETF products to include staking features.

Ripple is expected to receive approval from the New York Department of Financial Services to issue the stablecoin RLUSD, which may launch on December 4. If approved, Ripple will be able to legally offer RLUSD to the public, making it a major player in New York's regulated digital financial market and the broader stablecoin ecosystem, and this move will also put Ripple in direct competition with other well-known U.S. stablecoin issuers like Circle, Paxos, and Gemini.

WisdomTree will launch an XRP ETP on European exchanges, which will be 100% backed by spot XRP, with assets stored in cold wallets and adopting a dual custody model managed by regulated custodians.

Additionally, WisdomTree has registered an XRP ETF in Delaware, and 21Shares has also submitted an S-1 form to the SEC to apply for an XRP ETF, while Bitwise has submitted an XRP ETF application in Delaware.

Grayscale has opened private placements for qualified investors, including a trust fund for 17 tokens, including XRP. Robinhood's U.S. platform has re-listed SOL, ADA, and XRP, and added PEPE.

3. Whale Support

On the South Korean exchanges Upbit and Bithumb, XRP trading volumes reached $3.8 billion and $1.2 billion, respectively. Analysis firm Scopescan indicated that South Korean investors might be the main driving force behind the rise in XRP prices.

At the beginning of November, 400 million XRP were unlocked from an unknown custody wallet, equivalent to about $203 million.

At the end of September, Ripple whales purchased over 470 million XRP within 10 consecutive days.

However, despite the significant increase in XRP and various positive factors, some analysts have raised warnings:

CryptoQuant analysts noted that XRP's open interest has risen by 37%, which could lead to a decline; the last similar event resulted in a 17% drop.

Other analyses suggest that the current target price for XRP may be between $1.95 and $2.05, but it is important to note that since November 16, XRP's price and trading volume have shown an inverse correlation, indicating that XRP is undergoing a distribution phase, and market traders may be looking to sell.

Conclusion

As an established project, it is not easy for XRP to explode again. The recent multiple positive factors surrounding it, whether in terms of policy regulation or expectations for the launch of ETFs and other financial products, have generated considerable anticipation among investors. However, the cryptocurrency market has a long-standing investment tradition of favoring new over old, and whether XRP can continue to grow stronger and achieve new heights remains to be seen.