Three bullish case for XRP: FOMO, funding rates, SEC battle

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous bull runs and bear markets, and I must say that the recent surge in XRP is particularly intriguing.

XRP started its strong bull run right after the broader crypto market started to cool down. 

On Tuesday evening, the value of XRP (XRP) peaked at a eight-month high of $0.73, but shortly afterward, its price began to drop. This digital asset managed to overtake USDC’s market capitalization, placing it as the seventh largest cryptocurrency with a market cap of approximately $36 billion.

Regardless of a slight decrease in its price, XRP has managed to increase by 8% over the last 24 hours and is now valued at $0.654. At this moment, its total market capitalization stands at approximately $37 billion.

As an analyst, I’m observing a significant surge in the daily trading volume of XRP, nearly tripling to reach a staggering $12 billion. Historically, such high trading volumes often correlate with increased market volatility.

As an analyst, I believe one significant key to XRP surpassing the $0.74 mark lies in the psychological factor of FOMO (Fear Of Missing Out), as suggested by Santiment. This emotional driver can potentially fuel increased demand for XRP, leading to potential price increases.

🥳 The community surrounding XRP is buzzing with enthusiasm and conversations about crypto’s #7 market cap. Approximately 4% of all coin discussions revolve around XRP, following a significant surge of over 45% over an 8-day period.

Whether it reaches $0.74 again, its peak from March, hinges largely on the fear of missing out (FOMO) remaining strong…

— Santiment (@santimentfeed) November 13, 2024

Currently, approximately 4% of cryptocurrency conversations taking place on social media revolve around XRP, with its price approaching the level seen in March.

According to data from Santiment, there were two instances where XRP’s influence on social media platforms was remarkably alike. The initial peak occurred in early August, coinciding with a significant rise in XRP’s value from around $0.44 to over $0.60. This spike could potentially indicate a local peak or maximum point in the market.

The second peak occurred around early October, coinciding with a dip in XRP’s value from approximately $0.64 down to $0.52 – marking a local minimum point.

Should the price of XRP start an upward trend before its social buzz subsides, there’s a good chance that the value could hit the $0.74 region.

A significant factor might be the funding rate for XRP on prominent cryptocurrency exchanges. To illustrate, the funding rate on Binance indicates a substantial number of long positions compared to short ones. If the number of long liquidations surpasses that of shorts significantly, it could suggest an upcoming price adjustment or correction.

The surge in XRP’s value is linked to the victory of Donald Trump in the U.S. Presidential election. The incoming president has expressed his intention to dismiss Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission. In simpler terms, some believe that Trump’s plan to replace Gensler could have a positive impact on XRP because Gensler has been critical about cryptocurrencies in the past.

Under a pro-cryptocurrency leader at the SEC, there’s a possibility that the ongoing legal dispute between the SEC and Ripple, the creator of XRP, may be resolved. This development could spark yet another round of panic buying or fear of missing out (FOMO) among investors.

Notably, Trump is contemplating Dan Gallagher, who serves as the legal head at Robinhood, as a potential successor to Gensler’s position at the SEC.

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2024-11-13 10:44