Ripple (XRP) Price Prediction: Is a Bullish Breakout on the Cards?

The XRP token was trading at $1.08655 on Wednesday morning, up by 180% from its lowest level in October.

The price of XRP has soared in recent weeks, as investors bet on a more favorable regulatory environment under the Trump administration.

On Wednesday morning, the XRP token was trading at $1.08655, up by 180% from its lowest level in October.

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The XRP price has been under pressure in the past few years due to the approach taken by Gary Gensler, the head of the Securities and Exchange Commission (SEC), towards the crypto industry.

In the past four years, Gensler has used courts to regulate the crypto industry by launching lawsuits against companies like Ripple Labs, Uniswap, Coinbase, and Kraken.

The SEC sued Ripple in 2020, and the case has been ongoing since then. To some extent, Ripple emerged victorious as the judge ruled that XRP was not an illegal security. The company also received a $250 million fine, lower than the $2 billion that the SEC was asking for.

However, recently the SEC appealed the ruling, putting more pressure on Ripple.

Therefore, the XRP price has soared as investors now anticipate that the Trump administration will be more friendly to the crypto industry.

Trump has promised to be a more crypto-friendly president, and his recent appointments show that. For example, he has selected Howard Lutnick to be the head of the Commerce Department. Cantor Fitzgerald head, Lutnick, has expressed his support for cryptocurrencies in the past.

He has also selected Elon Musk and Vivek Ramaswamy to lead the Department of Government Efficiency (DOGE). The two have been prominent supporters of cryptocurrencies in the past.

As a result, analysts now expect the new Securities and Exchange Commission to be more friendly to the crypto industry. One of the top predictions is that the agency will end litigations, including on Ripple.

Moreover, analysts believe that some companies will apply for a spot XRP ETF as soon as in January. Such an application would make sense considering that XRP is among the oldest and most prominent coins in the industry.

Other factors contributing to the XRP price increase include investors’ anticipation of the upcoming Ripple stablecoin (RLUSD), which will be backed 1:1 to the US dollar. The challenge, however, is that it is not clear whether the stablecoin will be successful in the first place.

Besides, the stablecoin industry is highly competitive and Tether is in a pole position, with its $130 billion in assets.

Additionally, there are signs that the XRP Ledger, a layer 1 network, is not achieving substantial success as it faces competition from the likes of Base and Sui.

XRP price weekly chart

XRP chart by TradingView

The weekly chart shows that the Ripple price made a strong bullish breakout this week. This rebound happened after the coin remained along the $0.60 level for months. It has now moved above the key resistance level at $0.9375, its highest swing in July last year. Moving that level invalidated a head and shoulders pattern.

Most notably, the XRP token has moved above the psychological level of $1. It has also jumped above the 50-week and 200-week Exponential Moving Averages (EMA), indicating that bulls are in control.

Ripple price has also jumped above the 50% Fibonacci Retracement level and the Ichimoku cloud, while the MVRV indicator has risen to 2.8. These are signs that the coin has more room to run.

Therefore, more gains will follow if the XRP price surges above last week’s high of $1.2698. If this happens, it will raise the chance of the coin rising to the year-to-date high of $1.9712, which is about 85% above the current level. A drop below $0.9375 will invalidate the bullish view.