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CryptoQuant community analyst Maartunn highlighted that XRP’s current price increase is a “leverage-driven pump,” with a similar event in the past ending in a 17% correction.
According to CryptoSlate data, XRP was priced at $1.72 as of press time, up 16.4% over the past 24 hours to become one of the best-performing crypto in the top 10.
The open interest in XRP futures increased 37%, along with the recent price surge.
Moreover, XRP climbed 232% in the past 30 days, which is over four times larger than the crypto market average return of 57.3% in the same period.
Bullish news
XRP started its run nearly one week after the US election results, which resulted in former President Donald Trump returning to the White House for a second term.
During his campaign, Trump’s crypto-friendly approach brought investors optimism, sparking gains in various altcoin prices, including XRP, which crossed the $1 threshold for the first time since November 2021.
Yet, XRP’s most significant pump happened after Nov. 21, when the US Securities and Exchange Commission (SEC) chair Gary Gensler announced he would leave his role on Jan. 20, 2025. In the few hours following his statement, XRP’s price soared by 35%, reaching $1.60.
Under his administration, Gensler took a “regulation by enforcement” approach, which resulted in the SEC cracking down on major crypto firms, such as Binance, Kraken, Coinbase, and XRP’s issuer Ripple.
Notably, a four-year legal battle between Ripple and the US regulator is still ongoing as the SEC tries to prove in court that the XRP sales were, in fact, an unregistered securities offering.
The major price movement can then cause the lawsuit to be dismissed with the start of a Trump term, making XRP a sound investment.
In addition to the positive news suggesting that XRP may be discarded as a security in the US, Ripple has been making key developments recently.
This week, the firm invested in Bitwise’s XRP fund and launched the first tokenized money market fund on its XRP Ledger.
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