In December, Bitcoin reached an unprecedented peak price in history. Meanwhile, analysts anticipate that XRP could surpass this milestone, potentially outperforming Bitcoin, Ethereum, and Solana’s growth from the same month.
As a researcher, I’ve observed an intriguing trend in the XRP market. By December 2nd, after seven tumultuous years, the price of XRP tokens had climbed back approximately 84% from its all-time high of $3.4 in January 2018, reaching a multi-year low of $0.16 in March 2020. However, it’s worth noting that this recovery brought the token price to $2.17.
Subsequently, the asset followed a 30-day bullish falling wedge pattern that saw decreasing daily trading volumes. This traditional technical chart pattern turned bullish on New Year’s Day. Since the beginning of the year, Ripple has experienced a 26% increase in value.
Six major factors that XRP markets are anticipating could drive future price increases are as follows:
1. Institutional Adoption: The growing interest from large financial institutions in using XRP for cross-border payments and settlements.
2. Regulatory Clarity: Favorable regulatory decisions regarding the use of XRP by financial institutions.
3. Partnerships and Collaborations: Strategic partnerships and collaborations that expand the utility and adoption of XRP.
4. Use Cases: The development and implementation of new use cases for XRP, particularly in the areas of cross-border payments and decentralized finance (DeFi).
5. Market Demand: Increasing demand from retail and institutional investors for XRP due to its unique features and potential growth opportunities.
6. Technical Advancements: Continued advancements in XRP’s technology, such as improvements in speed, scalability, and security, which could make it more attractive to users and drive adoption.
1. Musk Is Backing Ripple’s Bid to Cast Off The SEC
In December, the newly appointed advisor for D.O.G.E. (Digital Currency Hodler) on President-elect Trump’s team posted another critical tweet regarding the Securities and Exchange Commission (SEC). Previously, in October, he had expressed a positive viewpoint about XRP when asked.
In the wake of the U.S. Fifth Circuit Court in New Orleans determining that the Securities and Exchange Commission (SEC) had violated the law (due to their endorsement of diversity prerequisites for corporate boards), Elon Musk expressed his opinion on Twitter:
“The SEC is just another weaponized institution doing political dirty work.”
In simpler terms, the quote was a re-post from Senator Mike Lee of Utah, who expressed his distrust towards the Securities and Exchange Commission (SEC), stating that it is one of those organizations labeled as “independent commissions” which he does not find reliable.
The SEC is just another weaponized institution doing political dirty work
— Elon Musk (@elonmusk) December 12, 2024
Elon Musk’s tweet followed swiftly after a decision made by the U.S. Fifth Circuit Court, which supported Ripple’s claim that the Securities and Exchange Commission (SEC) has been enforcing regulations instead of establishing policies in another case.
Brad Garlinghouse, the CEO of Ripple, echoed Elon Musk’s remarks by simply saying, “He hit the nail on the head.
What he said
— Brad Garlinghouse (@bgarlinghouse) December 13, 2024
Previously, during Q4, at a gathering of the American Political Action Committee, a participant posed this question to the tech magnate: “Will the XRP Ledger be adopted by financial institutions as part of their operations in the coming times?
Musk stated, “It’s important to clarify that this isn’t about endorsing or not endorsing XRP. However, I believe that the inherent characteristics of cryptocurrency support personal liberty.
2. Trump Back in White House a Big Win for XRP
Charles Gasparino, Senior Correspondent for FOX Business, has mentioned that the incoming U.S. President, Donald Trump, might exert influence in the SEC’s legal action against Ripple Labs.
As a crypto investor, I recently shared my thoughts with Anthony Pompliano, CEO of Professional Capital Management, during his podcast. Specifically, I expressed my belief that the incoming Trump Administration could significantly alter the Securities and Exchange Commission’s (SEC) stance on Ripple.
He emphasized that Mr. Trump’s nomination of Paul Atkins for SEC Chair was a clear indication of a more favorable Securities and Exchange Commission towards Ripple and XRP over the next four years.
As CEO of a worldwide consulting company, Atkins works with clients specializing in the field of cryptocurrency. On the other hand, it seems that Trump is considering removing Commissioner Caroline Crenshaw from the SEC due to her opposition towards crypto.
The ongoing legal case by the Securities and Exchange Commission (SEC) against XRP could be the biggest obstacle affecting its market value. This legal action poses the gravest ongoing risk not only to XRP but also to the broader acceptance of Ripple within the institutional sector.
3. XRP for Oil in The Middle East and North Africa
Reflecting on a significant year for cryptocurrencies and peering towards 2025, Ripple continues its dedication to fostering growth within the digital assets sector, particularly in the Middle East and Africa. Here’s what we are eagerly anticipating in 2025.
– UAE’s Crypto Leadership
The UAE is setting the pace for crypto…— Reece Merrick (@reece_merrick) January 2, 2025
On Thursday, Reece Merrick, the managing director of Ripple for the Middle East and Africa, provided an extensive update regarding the ongoing transformation in remittances across MENA countries, which he referred to as the Remittance Revolution.
As a crypto investor, I’m observing that the United Arab Emirates (UAE), rich in oil resources, is spearheading the embrace of cryptocurrencies across the Middle East region.
In the MENA region, remittances are undergoing a digital transformation with stablecoins taking center stage. These digital currencies are reducing costs and accelerating transfer times, fostering unprecedented financial links between the Middle East, South Asia, and Africa more effectively than ever. The UAE is spearheading this movement towards enhanced financial connectivity.
He predicts banks in the Middle East will “fully embrace blockchain” solutions like XRP in 2025:
2025 marks a significant shift as Middle Eastern banks completely adopt blockchain technology. Observe the UAE, Saudi Arabia, Bahrain, Qatar, and Morocco – they’re reshaping banking by accelerating transactions, tokenizing assets, and leveraging stablecoins. This transformation is crucial for expanding and safeguarding our financial systems for the future.
The rapidly increasing sum locked within real-world asset tokenization platforms (RWA) indicates a positive outlook for XRP’s worth, as it serves as an efficient, cost-effective solution for global trade transactions. In the crypto community, this trend is widely recognized as one of the key factors driving blockchain growth towards 2025.
4. Markets Are Going Crazy for Ripple’s RLUSD
On December 17th, Ripple Labs introduced a new stablecoin, RLUSD. This addition is expected to increase liquidity alongside the XRP pool within the blockchain network. Over time, it could provide more sustained price support for XRP.
The newly introduced stablecoin maintains a fixed value equivalent to the US dollar or other global currencies such as the yen or euro. Currently, this new coin can be traded on various cryptocurrency platforms, including Uphold, Bitstamp, Bitso, Moonpay, CoinMENA, Bullish, and more.
Prior to the release of RLUSD, there was already immense excitement within the sector about Ripple, causing Ripple’s CTO David Schwarz to caution against fear of missing out (FOMO) before the coins became available for trading. It’s worth noting that a significant portion of newly created stablecoins were minted on Ethereum, totaling approximately $52 million.
Jack McDonald, senior vice president of stablecoins at Ripple, shared with CNBC that the surge in XRP’s growth prior to the introduction of RLUSD sparked the idea for Ripple’s new brand stablecoin. In other words, a significant part of our motivation to launch a stablecoin comes from the impressive growth we’ve witnessed in cross-border payments.
McDonald mentioned that as they’ve increasingly relied on stablecoins in their transactions, it sparked curiosity about developing our very own native stablecoin. This homegrown coin could potentially offer more cost savings and operational efficiency compared to other options.
Bottom Line for Investors
During the New Year break, XRP experienced a bullish turnaround. Ripple surged past a falling wedge formation that showed decreasing trading activity.
It’s worth noting that the rally required significantly lower daily trading volumes to recover 68% of the drop in value from XRP’s all-time high price on Dec. 2.
It seems that we are still quite a distance from the exuberance phase of this surge, as there appears to be significant potential for further growth ahead.
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2025-01-05 14:09