The news is a real relief for the famous “XRP Army”, which has had to face suppressed price action of its favorite altcoin due to incessant petitions against Ripple, by the SEC since Gensler was appointed to its leadership in 2021. And the good news doesn’t stop there for XRP!
Ripple bears suffer major selloffs
The announcement of Gary Gensler's resignation appears to be a positive development for the entire crypto market. However, it is currently holders of the altcoin XRP who appear to benefit the most. This comes as no surprise, however, given the still unresolved legal issues between Ripple and the SEC, which have persisted throughout Mr. Gensler's tenure.
So, following the news, the price of
As a reminder, a liquidation occurs when a trader fails to meet the margin requirements for a leveraged position. This then forces the affected exchange to sell its assets to avoid further losses. In the case of XRP, the liquidation mainly resulted in a short squeeze, or large liquidations of short positions.
This is because a short squeeze occurs when a large number of short positions (traders betting on price declines) are forced to close, driving up the price as they rush to buy back the asset.
At the time of writing, the altcoin XRP is trading at $1.40 and currently has a market capitalization of $80.64 billion. With Gensler's impending departure, crypto lawyer John Deaton noted that XRP's price gains could be even higher, and the market cap could climb to $100 billion.
“XRP will soon reach a market cap of $100 billion. Times are changing,” Deaton wrote on X.
At the same time, CryptoQuant data shows that the total number of XRP sent to exchanges has decreased significantly. In general, high values on exchanges indicate increased selling pressure in the spot market. This suggests that more assets are being liquidated, which could potentially push prices lower.
However, knowing that this number is currently low for XRP, it seems that its holders are refraining from selling. If this remains the case, the value of the token could exceed $1.40.
An XRP price at $2 coming soon?
According to the 4-hour chart, the price of XRP has moved in a range of $1.04 to $1.17 since November 18. This sideways movement resulted in the formation of a bull flag, a chart pattern that signals upside potential.
The bull flag begins with a sharp rise in price, forming the “pole” of the flag, which is driven by strong buying pressure that exceeds the impact of sellers. This is followed by a consolidation phase, where price retraces slightly and moves in parallel trend lines, creating the flag structure.
Yesterday, XRP finally broke above this pattern, signaling that the bulls have taken control of the market. If this momentum persists, the price could rise above $1.50, potentially approaching the $2 threshold.
However, this bullish scenario depends on market behavior. Indeed, if holders decide to cash in their profits instead, selling pressure could cause the price of the altcoin XRP to fall below $1, erasing its recent gains.
Moral of the story: The price of XRP only depends on the SEC clouds.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult a professional before making any financial decisions.
