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Ripple price is on track for its third consecutive weekly gains as investors cheer the recent Donald Trump victory in the United States and its impact on regulations. The XRP token was trading at $1.08655 on Wednesday morning, up by 180% from its lowest level in October.
Ripple soars on regulations hope
The XRP price has been under pressure in the past few years because of Gary Gensler’s approach to regulations as the head of the Securities and Exchange Commission (SEC).
In the past four years, Gensler has used courts as a way of regulating the crypto industry by launching lawsuits against companies like Ripple Labs, Uniswap, Coinbase, and Kraken.
The SEC sued Ripple in 2020 and the case has been ongoing since then. To some extent, Ripple emerged victorious as the judge ruled that XRP was not an illegal security. The company also received a $250 million fine, lower than the $2 billion that the SEC was asking for.
Recently, however, the SEC has appealed the ruling, putting Ripple and more pressure. Therefore, the XRP price has soared as investors anticipate that the Trump administration will be more friendly to the industry.
Trump has promised to be a more crypto-friendly president, and his recent appointments show that. For example, he has selected Howard Lutnick to be the head of the Commerce Department. Lutnick, the head of Cantor Fitzgerald, has expressed his support for cryptocurrencies in the past.
He has also selected Elon Musk and Vivek Ramaswamy to lead the Department of Government Efficiency (DOGE). The two have been prominent supporters of cryptocurrencies in the past.
Therefore, analysts believe that the new Securities and Exchange Commission will be more friendly to the industry. One of the top predictions is that the agency will end litigations, including on Ripple.
Also, analysts believe that some companies will apply for a spot XRP ETF as soon as in January. Such an application would make sense because XRP is one of the oldest and most prominent coins in the industry.
XRP price has also jumped as investors anticipate the upcoming Ripple stablecoin (RLUSD), which will be backed 1:1 to the US dollar. The challenge, however, is that it is not clear whether the stablecoin will be successful in the first place.
Besides, the stablecoin industry is highly competitive and Tether is in a pole position, with its $130 billion in assets. Additionally, there are signs that the XRP Ledger, a layer 1 network, is not achieving substantial success as it faces competition from the likes of Base and Sui.
XRP price forecast
XRP chart by TradingView
The weekly chart shows that the Ripple price made a strong bullish breakout this week. This rebound happened after the coin remained along the $0.60 level for months. It has now moved above the key resistance level at $0.9375, its highest swing in July last year. Moving that level invalidated a head and shoulders pattern.
Most notably, the XRP token has moved above the psychological level of $1. It has also jumped above the 50-week and 200-week Exponential Moving Averages (EMA), meaning that bulls are in control.
Ripple price has also jumped above the 50% Fibonacci Retracement level and the Ichimoku cloud, while the MVRV indicator has risen to 2.8. These are signs that the coin has more room to run.
Therefore, more gains will happen when the XRP price surges above last week’s high of $1.2698. If this happens, it will raise the chance of the coin rising to the year-to-date high of $1.9712, which is about 85% above the current level. A drop below $0.9375 will invalidate the bullish view.
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