XRP has experienced a 17% surge in the past 24 hours, outpacing the broader cryptocurrency market as the general rally starts to lose steam.
According to data from Cointelegraph Markets Pro and TradingView, XRP climbed from a low of $0.6833 on November 14 to a 16-month high of $0.8479, marking a 24% increase. In contrast, the overall crypto market capitalization has fallen by 2.8% to $2.91 trillion during the same period. Bitcoin (BTC) dropped 4%, while Ethereum (ETH) saw a 6% decline.
What’s Behind XRP’s Strong Rally?
Regulatory Shifts in the US Boost XRP’s Price
XRP traded at $0.7955 on November 15, marking a 50% weekly gain and reaching levels not seen since June 19, 2023. The recent surge follows a legal battle where 18 US states filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) and its chair, Gary Gensler, accusing them of "unconstitutional overreach" in regulating the crypto industry. States such as Nebraska, Tennessee, Texas, and others are involved in the case.
This lawsuit comes just after speculation that Gensler may step down from his role, further fueling optimism in the crypto market. Additionally, many in the crypto community believe that a shift toward a more crypto-friendly regulatory environment under potential future US President Donald Trump could benefit Ripple Labs — the company behind XRP — and other US-based tokens, boosting their long-term value.
Rising Open Interest Signals Confidence in XRP
The rally in XRP’s price has been accompanied by a sharp increase in its open interest (OI), a key metric used to gauge market sentiment and predict future price movements. On November 15, XRP’s OI jumped to $1.3 billion, up by 20% from the previous day, according to CoinGlass data. This growth in open interest reflects strong investor confidence, indicating that the current upward trend in XRP’s price could continue.
XRP May Be Ready for a Long-Term Recovery
Several crypto analysts believe that XRP’s current momentum could lead to a sustained recovery. Independent analyst Egrag Crypto forecasts that the token could surge to as high as $11, which would represent a 40-fold increase from its low of $0.28. Egrag noted that despite the ongoing SEC lawsuit in the past, XRP managed to achieve a 20x price surge, and with clearer regulatory conditions today, the potential for even greater gains is strong.
Technical analysis from Mikybull Crypto shows that XRP is breaking through a long-term downward trend, with $0.85 and $1.10 as key resistance levels. The recent crossover of the MACD (Moving Average Convergence Divergence) indicator also signals a shift in market conditions, with the bullish momentum favoring further upside.
XRP has flipped several key price levels into support, including the 100-week and 50-week simple moving averages at $0.5278 and $0.5573, respectively. This suggests that increased buying activity at these levels could push XRP toward the $1 mark in the short term.
Looking Ahead
XRP’s recent rally reflects growing optimism, fueled by a combination of shifting regulatory factors and positive technical signals. While some analysts predict a sharp rise in the coming months, others caution that crypto markets remain volatile, and investors should proceed with caution.
As the US legal landscape and global sentiment toward cryptocurrencies evolve, XRP may continue to perform well — especially if Ripple Labs benefits from clearer regulations and a more favorable business environment.
Note: This article does not constitute investment advice. Kindly ensure, you conduct your own research before making any financial decisions..