XRP Price Hits 3-Year High as Market Anticipates Political Shift in US Blockchain Ecosystem

Ripple Labs Inc’s associated XRP coin recently hit a new milestone, with the price reaching the highest level recorded in three years. Many attribute the recent surge

The price of XRP continues to rise, reaching new highs not seen in three years. Several factors are contributing to this surge, including broader market gains and anticipation of a political shift in the US blockchain ecosystem.

As of Saturday, XRP’s price had reached a peak of $1.20, but it has since experienced a slight decline. At the time of writing, XRP was trading at $1.12, still up 7.24% in the last 24 hours, according to market cap data.

Over the past week, the coin has seen an impressive rally of 90.5%, while over the last 30 days, it has surged by 105.86%. This sustained rise has pushed XRP's market capitalization to $63.69 billion, making it now the sixth-biggest cryptocurrency.

The coin’s strong performance comes amid news of Donald Trump's victory in the US Presidential elections, which were held on November 5. This news has helped bolster investors' confidence in cryptocurrencies, including memecoins.

Among mid-cap coins, memecoins have led the market rally in terms of both total performance and relative gains. XRP, which had been trading at the $0.5 level for months, also experienced a breakout above $0.95.

As reported by CNF, the surge in XRP comes amidst speculation that SEC Chair Gary Gensler may resign following Trump's inauguration on January 20. Crypto market participants have frequently criticized Gensler for his heavy-handed approach to crypto regulation.

Gensler has played a pivotal role in the Ripple vs. SEC lawsuit, and his departure could significantly alter the regulatory landscape.

The SEC lawsuit, filed in December 2020, alleges that Ripple Labs and its founders sold XRP to investors, and that these sales constituted securities offerings. In July 2023, US federal judge Analisa Torres ruled that XRP is not a security when sold to retail investors on secondary exchanges.

However, the Judge determined that XRP sold to institutional investors violated securities laws and fined the firm $125 million for these sales.

The SEC has since filed an appeal against this ruling, and the deadline for the agency's final briefs is now set for January 2025. With Gensler's potential departure, XRP could face a clearer path regarding its classification as a security.

This could also increase the possibility of a spot XRP ETF being approved in the US.

XRP Futures Open Interest Hits Record High

In addition to XRP's recent price surge, futures Open Interest (OI) has also reached record levels, exceeding $2 billion, as per CoinGlass data. OI measures the number of outstanding futures or options contracts that remain open.

A high OI indicates increased speculative trading, where traders are essentially betting on future price movements. This can contribute to higher volatility as leveraged positions amplify reactions to market news.

According to analysts, the recent spike in XRP futures Open Interest to record levels suggests a rise in trading activity, which is often an indicator of market bullishness. If momentum continues, some speculate that XRP could experience a rally towards its all-time high of $3.30.