Key Takeaways:
- XRP has been on a tremendous run ever since Donald Trump was declared the winner of the U.S. presidential elections. The 6th largest cryptocurrency by market managed to surpass the $1.26 mark for the first time since 2021.
- The surge in Ripple’s price is due to a substantial increase in activity from large buyers, especially whales, who have reportedly accumulated nearly 1 billion XRP tokens over the last two months. This is equivalent to 18% of its circulating supply.
- Trump is expected to replace outgoing SEC chairman Gary Gensler with a pro-crypto pick, officially kickstarting the enactment of friendlier policies. This is advantageous to Ripple and XRP as it has been the biggest victim of Biden’s anti-crypto stance.
- Spot XRP exchange-traded funds (ETFs) are also awaiting approval in the U.S. The investment products wholly backed by the Ripple token are expected to be released by July 2025.
The U.S. presidential election has been a blessing in disguise for the crypto market, especially Ripple (XRP), as the world’s sixth-largest cryptocurrency by market capitalization saw its price hit a major milestone, surpassing the $1.26 mark for the first time in three years. This was also the token’s highest valuation since 2021.
This surge was part of the broader rebound in the crypto market, led by Bitcoin (BTC), which is getting ever closer to attaining a $100,000 valuation. Most notably, the spike in Ripple’s price has prompted a surge in trading activity from large buyers, particularly whales, suggesting that there is growing expectation that XRP could be on the verge of a significant bull run.
Crypto Whales Now Hold 18% of XRP’s Circulating Supply, Speculating Massive Price Breakout
According to a report by crypto analytics firm Santiment, large wallets holding between 1 million and 100 million XRP have managed to acquire 453.3 million XRP, worth around $525 million, in just one week. These whales are now in control of about 18% of the cryptocurrency’s circulating supply, its highest concentration in two months.
This influx in whale activity highlights a renewed interest in the cryptocurrency and has been instrumental in driving XRP’s recent 122% price surge, further reinforcing market confidence.
The whale accumulation trend suggests long-term bullish sentiment for Ripple, aligning well with its steady rise. This behavior also serves as a factor that will stabilize its price, preventing abrupt corrections. As whale accumulation increases, XRP will gain the much-needed backing to continue its upward trajectory.
On the contrary, wallets holding less than 1 million XRP dumped 75.7 million tokens, worth approximately $87.9 million, during the same time as some traders sought short-term profits. However, this event is viewed by experts as a positive signal for future price trends.
Moreover, long-term holders (LTHs) of Ripple are refraining from selling their holdings. Typically, a spike in this metric implies profit-taking activity, which can impact the token’s price negatively. However, a lack of such movements suggests that long-term holders are confident in XRP’s future price potential. This also reinforces a bullish outlook for Ripple.
By holding onto their assets, LTHs are signaling the belief they protect sustained price increases, further solidifying the token’s support level at $1. This conviction also creates a favorable environment for a continued rally.
Institutional Interest In Ripple Is Rising
That being said, Ripple’s bullish momentum extends beyond retail and whale activity as institutional investors are also showing great interest in the cryptocurrency. On Monday, Swiss-based digital asset manager 21Shares announced that its XRP-backed exchange-traded fund (ETF) has surpassed $140 million in assets under management (AUM).
21Shares’ AXRP ETF is physically backed by XRP and tracks its price performance, offering investors a transparent and regulated avenue to participate in the digital currency’s growth. The crypto investment product was launched in April 2019.
New SEC Leadership Could Be Bullish For Potential Spot Ripple ETFs
Furthermore, speculation about potential shifts in the U.S. crypto regulatory policies is also strengthening XRP’s bullish outlook. Experts have often blamed the underperformance of Ripple on the Securities and Exchange Commission’s (SEC) anti-crypto stance, of which XRP has been one of the biggest victims.
Ripple Labs, issuers of the XRP token, and the financial regulator have been indulged in a nearly half-a-decade-long court battle where they have been arguing back and forth about whether to classify cryptocurrencies as securities or commodity assets.
Crypto investors are optimistic about a Trump presidency as he has promised to implement a friendlier regulatory approach that would encourage growth and innovation in the industry. The President-elect has also promised to fire SEC chairman Gary Gensler, who has been perceived by crypto enthusiasts as a public enemy.
Another positive development for XRP’s price would be the approval of the spot XRP exchange-traded fund. Last month, crypto asset manager Bitwise filed permission with the SEC to issue an ETF backed by Ripple, and it expects the agency to make a final decision on the fund by the summer of 2025.
Meanwhile, Ripple is also expanding partnerships and ecosystem innovations. Over the past week, discussions were held between Ripple Labs CEO David Schwartz and Cardano founder Charles Hoskinson on leveraging Cardano’s privacy-focused technology to enhance Ripple-based applications.
Ripple Can Move Above $1.28 If Bullish Pattern Sustains
Additionally, French banking giant Societe Generale announced that it has selected Ripple’s XRPL Ledger as the next blockchain to issue the EURCV stablecoin – an EU-compliant euro-backed cryptocurrency. The stablecoin is expected to be deployed on Ripple next year.
If the bullish factors remain intact, then XRP’s price could ride past $1.14, paving the way for a move toward $1.28 and beyond. However, this upward trajectory heavily depends on whale activity and LTH conviction supporting the asset.
On the contrary, if XRP loses its support level at $0.99, then its bullish sentiment would be invalidated. A drop below the $1 mark would lead to a decline toward $0.87, pulling the cryptocurrency further away from its recent highs.
At the time of writing, Ripple (XRP) is trading at $1.12 – up 2% in the last 24 hours.
