XRP Rallies Over 50% to $0.74 Amid Social Media Surge
XRP has experienced a significant rally over the past nine days, rising from $0.4957 on November 4 to a peak of $0.7407 today on Binance, marking a surge of over 50%. Approximately 30% of this increase occurred within the last 48 hours, followed by a correction of -12%, bringing the price down to $0.65 as of press time. The main factors contributing to this rally are:
#1 XRP Funding Rates and Social Dominance Spike
Heightened social media activity and changes in funding rates have driven the XRP price surge. On-chain analytics firm Santiment reported that discussions related to XRP increased significantly, with over 4% of all coin discussions focusing on it following a 45% breakout over eight days. The firm noted that surpassing $0.74, XRP's year-high from March, depends on maintaining FOMO at bay and keeping funding rates on major exchanges like Binance from becoming overly weighted by long positions.
Santiment found that the ratio of long to short positions for XRP on Binance reached its highest level since March 31, indicating strong bullish sentiment among traders. Previous spikes in social dominance served as top signals, suggesting that the current surge could precede a market correction. Conversely, earlier social spikes indicated market bottoms.
#2 Gensler Resignation Speculation
Speculation regarding potential regulatory changes is also impacting XRP's market dynamics. Pro-crypto lawyer James "MetaLawMan" Murphy noted parallels between US presidential elections and SEC chair resignations. After the 2016 and 2020 elections, SEC chairs Mary Jo White and Jay Clayton resigned shortly after results were announced. With the 2024 election, there is speculation that current SEC Chair Gary Gensler may resign, prompting Murphy to post, "Hey Gary Gensler, we’re waiting."
Time to say Goodbye Gary!
Nov. 8, 2016: Trump elected
Nov. 14, 2016: Mary Jo White (SEC Chair) announces her resignationNov. 3, 2020: Biden elected
Nov. 16, 2020: Jay Clayton announces resignationNov. 5, 2024: Trump elected
Nov. __, 2024: Hey @GaryGensler, we’re waiting— MetaLawMan (@MetaLawMan) November 12, 2024
This speculation holds particular significance for the XRP community due to the ongoing legal battle between Ripple and the SEC. President-elect Donald Trump has expressed intentions to remove Gensler upon taking office, aiming for a more crypto-friendly SEC chairman. Ripple CEO Brad Garlinghouse has supported this potential change, advocating for replacements who favor the crypto industry, such as Chris Giancarlo, Brian Brooks, or Dan Gallagher. Garlinghouse emphasized the need for regulatory clarity regarding digital assets like Ethereum and XRP.
Many Ripple supporters speculate that Gensler's removal could lead to a favorable outcome for Ripple, potentially resulting in the SEC dropping its appeal in the ongoing case. The market appears to be reacting to this speculation as investors anticipate possible settlements or regulatory shifts.
At press time, XRP traded at $0.65.
