The recent rise in the price of XRP suggests that by the end of 2024, the price of XRP could continue to soar. Take a look at the 5 factors that will determine the price of XRP by the end of 2024 below.
XRP is becoming a crypto asset to pay attention to at the end of 2024, considering its gradual but significant price increase.
On Monday, December 02, 2024, XRP was ranked as the third most valuable crypto asset as the price of XRP reached $2.48. This achievement is the highest price of XRP in the last six years.
So, what are the determining factors for the price of XRP to experience a spike at the end of 2024?
Key Takeaways
1. XRP price increase: In the last six years, the price of XRP reached its highest point of $2.48 on December 02, 2024
2. XRP price at the end of 2024: The increase in the price of XRP occurs due to various underlying factors
3. Factors determining the increase in XRP prices: Since Donald Trump won the American Presidential Election, XRP has experienced a price spike, and of course this has been accompanied by other factors.
Investing in crypto assets is indeed promising, especially in assets that look 'green', for example XRP.
Because the price of XRP will increase periodically but definitely at the end of 2024, it is possible that in 2025 XRP investors will smile happily.
Even though it is promising, still do in-depth research first. This article is simply educational to give you insight into the current condition of the XRP price.
As for the increase in the price of XRP at the end of 2024, it cannot be separated from various determining factors, here are 5 factors that determine the increase in the price of XRP.
Read Also: XRP and Cardano Prices Rise, Surpass $2 Million in ICO
1. Donald Trump's victory in the American Presidential Election
The first and arguably most vital determining factor for the increase in XRP prices was Donald Trump's victory in the US presidential election.
Donald Trump's victory automatically turned a switch triggering rising optimism in the crypto market, and crypto investors believed that Trump would keep his pro-crypto campaign promises.
Source: https://euromoneydigital.com/
Even if you look at the history of the crypto market in the last few months, during the US election, the crypto market itself experienced a surge of up to 42%, around $3.5 trillion because of Trump's promises regarding crypto.
Ripple CEO Brad Garlinghouse expressed confidence, saying that Trump will "make crypto great again." Garlinghouse's optimism seems well-founded.
As one example, in the case of XRP, the price of XRP has increased fivefold since November 5, surpassing the percentage increase of other major cryptocurrencies such as Bitcoin, Ethereum, and Solana.
2. The importance of Altcoin Season
Bitcoin shot up to $100,000 after Trump's victory.
However, in the same period, Bitcoin's dominance, namely the percentage of its market capitalization to the total crypto market value, fell from 60% to 53% in the last week.
Historically, a decline in Bitcoin's dominance amidst a surge in the total value of the crypto market has often signaled the start of "altcoin season," which is when investors' attention begins to shift to alternative cryptocurrencies outside of Bitcoin, such as XRP.
This was revealed by the crypto research institute 10x Research in an upload last week.
Read Also: How to Buy XRP (XRP)
3. Notable XRP ETFs
The determining factor for the next increase in XRP prices is related to the XRP ETF which is of concern.
After the success of exchange-traded funds (ETFs) for Bitcoin and Ethereum this year, Solana and XRP are now vying to be the next crypto assets to gain ETF approval.
Ripple CEO Brad Garlinghouse expressed his belief that an XRP ETF is ultimately "inevitable."
Several companies, including Bitwise Asset Management, Canary Capital, 21Shares, and WisdomTree, have submitted XRP spot ETF proposals to the SEC.
According to André Dragosch, Bitwise Europe's head of research, if an XRP ETF is approved, its value could potentially increase. This was revealed in a research report released last week.
With Trump set to take office next year, market analysts predict the crypto ETF approval process could become smoother, especially if Trump appoints a crypto-aligned SEC leader.
4. Gary Gensler's resignation from the SEC
The resignation of SEC Chairman Gary Gensler is also considered to be one of the determining factors for the increase in XRP prices.
Source: https://www.cnbc.com/
Gensler was known for taking a tough stance on the crypto industry during his tenure, and his departure on January 20, coinciding with Trump's inauguration, was seen by many as a positive development for Ripple.
XRP's growth was previously hampered by a long-running legal dispute between Ripple and the SEC.
Azizov revealed to Forbes that with Gensler stepping down, there is a big chance the conflict can be resolved soon, paving the way for further growth for XRP.
Read Also: Solana vs XRP, Spot ETF Applications Spark Fierce Rivalry
5. Increased Trading Intensity
The determining factor for the increase in XRP prices occurred amid a surge in trading activity, coinciding with Robinhood's move to re-list XRP on its platform last month.
The retail trading platform previously delisted XRP in 2020 after pressure from regulators, when the US Securities and Exchange Commission (SEC) sued Ripple for alleged violations of securities laws through the sale of XRP.
In August 2024, Ripple was fined $125 million by a US judge, although Ripple CEO Brad Garlinghouse called the decision a victory for the company.
Ki Young Ju, CEO of crypto analysis platform CryptoQuant, revealed that large investors in Coinbase were the main driver of the XRP rally.
According to Young Ju, the high XRP trading activity on Coinbase has created a price premium for the asset compared to more retail-oriented trading platforms such as Upbit.
Additionally, data from analysis platform Scopescan shows that retail investors in South Korea also made a large contribution to the surge in XRP prices.
In the last 24 hours, XRP trading volume on Asian exchanges, including Upbit and Bithumb, even surpassed Bitcoin.
These are the five determining factors for the increase in the price of XRP at the end of 2024. Based on the factors above, it is appropriate for XRP to experience a price spike.
FAQ
1. Why is XRP experiencing a price increase?
The first and arguably most vital determining factor for the increase in XRP prices was Donald Trump's victory in the US presidential election.
2. Is XRP legit crypto asset?
Investing in crypto assets is indeed promising, especially in assets that look 'green', for example XRP. Because the price of XRP will increase periodically but definitely at the end of 2024, it is possible that in 2025 XRP investors will smile happily.
3. What is altcoin season?
The moment when investors' attention began to shift to alternative cryptocurrencies outside Bitcoin, such as XRP.
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