XRP Outperforms Crypto Market With 17% Pump — What’s Driving the Rally?
XRP (XRP) jumped 17% in the last 24 hours and outperformed the rest of the crypto market as the rally cooled.
According to data from Cointelegraph Markets Pro and TradingView, XRP rose as much as 24% from a low of $0.6833 on November 14 to a 16-month high of $0.8479.
In comparison, the overall crypto market capitalization declined, posting 2.8% daily losses to $2.91 at press time. Bitcoin (BTC) fell 4%, Ether (ETH) fell 6% in the same period.
XRP/USD Daily Chart. Source: TradingView
What is behind XRP's recent bullish momentum?
US regulatory climate change supports XRP price growth
XRP traded at $0.7955 on November 15, bringing its weekly gain to 50% and reaching the level seen on June 19, 2023. The rally comes as 18 US states file lawsuits against the Securities and Exchange Commission and its commissioners, including Chairman Gary. Gensler, about the crypto industry's “unconstitutional excesses”.
The plaintiffs include Nebraska, Tennessee, Wyoming, Kentucky, West Virginia, Iowa, Texas, Mississippi, Ohio, Montana and others.
This comes in the wake of Gensler's announcement that he may be leaving the agency, The Kobeisi Letter reported.
Source: Kobeisi's letter
The lawsuit alleges the SEC violated states' right to regulate their economies.
The issue comes amid growing optimism in the crypto community that a crypto-friendly business environment under incoming US President Donald Trump could benefit tokens linked to US companies such as Ripple Labs – the company behind XRP – and Uniswap (UNI). , will increase their value in the long run.
The increase in open demand supports the recovery of the price of XRP
The rise in XRP price on November 15 comes after a significant increase in open interest (OI).
Open demand is a key metric that traders and analysts use to assess market sentiment and predict future price movements.
According to CoinGlass data, XRP's OI rose to $1.3 on November 15, up nearly 20% from $1.1 billion the day before.
Open demand for XRP on all exchanges. Source: CoinGlass
High open interest simply indicates that the current market trend is strong enough to drive the underlying price, indicating investors' confidence that the trend will continue.
Related: Price Analysis 11/13: BTC, ETH, SOL, BNB, DOGE, XRP, ADA, SHIB, TON, AVAX
The price of XRP is looking to end a multi-year downward trend
Several crypto traders said they expect XRP to build on its current momentum to start a sustained recovery, setting double-digit price targets for the tact.
Independent analyst Egrag Crypto believes that a crypto-friendly and transparent regulatory environment could move XRP to $11, representing a 40x increase from its cycle low of $0.28.
“Despite the #SEC lawsuit in the last cycle, #XRP posted an impressive 20X surge,” explained the analyst in an analysis on X-
“Could we see a 40X or 50X boom now with unbeaten regulatory transparency?”
Crypto technical analyst Mikubul Crypto has shared a chart showing XRP price breaking above a three-year downtrend, with $0.85 and $1.10 as key resistance levels to watch at the time of writing:
“A big parade is coming.”
The multi-year downtrend line at $0.6163 anchored by the 200-week simple moving average (SMA) is acting as immediate support for XRP price.
The Moving Average Convergence Divergence (MACD) indicator has now produced a bullish signal. This happened during the week of November 8th when the MACD line (blue) crossed above the signal line (orange), indicating that market conditions have reversed to the upside.
XRP/USD Weekly Chart. Source: TradingView
It is worth noting that XRP's recent rally has seen it flip key levels into support, including the 100-week and 50-week SMAs at $0.5278 and $0.5573. Increased buying from these bullish zones could boost XRP's price, which represents the $1 short-term bulls' target.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
