XRP Soars 25% Following Gensler's SEC Departure Announcement, Fueling Bullish Sentiment
XRP saw a 25% price surge in the last 24 hours, with most of the gains occurring during early Asian trading hours on Friday. The rally was sparked by the announcement that Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), will step down in January. This move has sparked optimism among investors, who believe it signals a shift toward a more crypto-friendly regulatory environment for U.S.-based companies.
XRP's recent performance is linked to Ripple Labs, the high-profile payments company that has been at the center of a legal battle with the SEC since 2020 over allegations of selling XRP as a security. Ripple cleared this lengthy legal challenge in 2024, reigniting interest in XRP, which now boasts a market cap of $77 billion.
Over the past week, XRP has surged by 65% and has gained 150% in the past month, with CoinDesk analysts forecasting a potential short-term price target of $1.40.
The crypto community is also buoyed by the pro-crypto sentiments of former President Donald Trump, whose 2024 election victory is being seen as a possible catalyst for crypto-friendly policies. Additionally, some traders are speculating on the potential launch of an XRP exchange-traded fund (ETF) in the U.S., further fueling positive market sentiment.
This week, XRP, along with dogecoin (DOGE), saw significantly higher trading volumes than bitcoin on South Korean exchanges, indicating a surge in demand. XRP’s open interest in U.S. dollar-denominated futures has reached record levels, with over 2 billion tokens (worth over $2 billion) in positions betting on continued market volatility.