The shifting regulatory tides in the U.S. and recent favorable price action might set XRP, the payments-focused cryptocurrency, up for a significant increase of 40% in the near term. Since reaching a high near $2.9 in early December, XRP has experienced a slowdown in momentum, carving out a technical pattern known as a “descending triangle.”
This pattern is characterized by a lower horizontal support line, indicative of consistent demand at a specific price level, and a declining upper trendline that suggests increasingly shallower price bounces. The CMT Association’s technical analysis theory posits that descending triangles typically conclude with a downside break. However, when bullish breakouts occur, they tend to be more reliable and profitable, producing average gains between 16% and 47%.
As CoinDesk markets analyst Omkar Godbole notes, “XRP could surge 40% or more if prices top the declining upper trendline, signaling a resumption of the preceding bull run from early November lows near 50 cents.” However, he cautions that if XRP prices drop below the horizontal support line near $2.00, the bullish outlook would be overshadowed.
Moreover, social metrics indicate a heightened level of optimism surrounding XRP. A recent report from the sentiment tracking service Santiment revealed that there is increased enthusiasm towards the token based on social media activity and market commentary — surpassing even that for leading cryptocurrencies like Bitcoin (BTC) and Ether (ETH).
Since the election of Donald Trump, XRP has seen its price increase by more than 300%, outpacing other major cryptocurrencies. This remarkable rise is largely attributed to expectations for a crypto-friendly policy environment under Trump, which includes streamlined regulatory pathways that could benefit local crypto businesses, especially Ripple Labs, closely associated with XRP.
Additionally, the recent changes in SEC leadership, particularly the departure of Gary Gensler, who has been perceived as skeptical towards cryptocurrencies, could herald a more favorable regulatory environment for XRP. Ripple’s CEO, Brad Garlinghouse, stated last week that the incoming government is likely to end years of regulatory uncertainty and enable new domestic growth opportunities that had previously stagnated.
In the past six weeks of 2024 alone, Ripple Labs announced more U.S. deals than in the preceding six months, underscoring the direct impact of what analysts are calling the “Trump effect” on local business opportunities.
Furthermore, Ripple President Monica Long hinted in a recent interview that an XRP exchange-traded fund (ETF) could soon become a reality, reflecting the perceived shift towards a more favorable cryptocurrency regulatory framework under the incoming Trump administration.
