Ripple’s XRP price experienced a 25% surge, reaching $1.40**, following the announcement of SEC Chair Gary Gensler’s resignation effective January 2025. This bullish momentum triggered **$26.11 million in liquidations, a short squeeze, and reduced exchange inflows—signaling holder confidence. Technical analysis suggests a bull flag breakout on the 4-hour chart, hinting at potential climbs beyond $1.50** or even **$2, though profit-taking may cause temporary dips below $1.
👉 Discover how XRP’s rally compares to other top cryptocurrencies
Ripple’s XRP Price Surge: Key Drivers Behind the Rally
Regulatory Shift and Market Sentiment
The SEC Chair’s resignation marks a pivotal moment for XRP, alleviating regulatory pressures tied to Ripple’s ongoing legal battles. Investors interpreted Gensler’s departure as a sign of potential regulatory easing, fueling bullish sentiment.
- Liquidations: Short positions worth $26.11 million were wiped out, amplifying upward momentum.
- Exchange Inflows Decline: Fewer XRP transfers to exchanges suggest holders are holding long-term, reducing sell-side pressure.
XRP Outperforms Major Cryptocurrencies
XRP’s rally stands out against Bitcoin and Ethereum, reflecting targeted optimism. Analysts attribute this to:
- Technical Strength: Bull flag pattern indicating continuation.
- Community Confidence: Strong backing from XRP’s loyal investor base.
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Gary Gensler’s Resignation: Implications for XRP
A New Regulatory Era
Crypto lawyer John Deaton predicts XRP could achieve a $100 billion market cap, citing Gensler’s exit as a catalyst for resolving SEC litigation.
“XRP soon will achieve a $100B market cap. Times are changing.”
— John Deaton
Market Reactions
- Price Stability: XRP traded between $1.04–$1.17 since mid-November before the breakout.
- Trader Behavior: Reduced selling pressure hints at long-term accumulation.
XRP Price Prediction: Can It Hit $2?
Technical Analysis
- Bull Flag Breakout: Sustained trading above $1.50** could propel XRP toward **$2.
- Key Resistance: Watch for profit-taking near $1.75–$2.00.
Risks to Consider
- Profit-Taking Pullbacks: Short-term declines below $1 possible.
- Regulatory Clarity: Further SEC actions could impact momentum.
FAQs
1. Why did XRP’s price surge 25%?
The rally followed SEC Chair Gary Gensler’s resignation announcement, reducing regulatory uncertainty for Ripple.
2. What is a bull flag pattern?
A continuation pattern where a price consolidates after a sharp rise, often leading to further gains.
3. Can XRP reach $2?
Yes, if the bull flag breakout holds and buying pressure persists.
4. How did liquidations affect XRP’s price?
$26.11 million in short-position liquidations forced traders to buy back XRP, accelerating the surge.
5. Is now a good time to invest in XRP?
Monitor for stability above $1.40 and regulatory updates before deciding.
6. What’s next for Ripple and the SEC?
Gensler’s departure may expedite settlement talks, boosting XRP’s long-term prospects.
Conclusion
XRP’s 25% surge reflects a confluence of regulatory optimism and technical strength. With the bull flag pattern intact and holder sentiment bullish, $2 is within reach—barring profit-taking dips. Stay updated on SEC developments and market trends to navigate XRP’s volatile yet promising landscape.
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