XRP rises 400% in a single month. Can it still be bought?

On December 2, XRP's market value surpassed USDT and Solana, ranking third in the cryptocurrency market value list, and even surpassed Pinduoduo, rising to 138th among global mainstream assets.

As XRP rose above $2, it also successfully set a new high since April 2021. Before XRP took off, Ripple CEO said that the Trump administration brought new hope to the crypto industry, and XRP may usher in a turnaround. What many investors did not expect was that this turn came quickly and violently, with the price of XRP rising by 400% in the past month. However, with such a high increase, is it still possible to buy XRP now?

1. XRP Old Tree Blooms

In early November this year, the price of XRP had been hovering around $0.5. But on November 10, after Ripple CEO said that Trump might bring a turnaround for XRP, the price of XRP really skyrocketed.

According to CoinMarketcap data, as of the time of writing, XRP has risen from approximately $0.5 to around $2.5, an increase of 400% in the past month.

After hitting a temporary high of $1.966 at the peak of the bull market in April 2021, XRP has been falling continuously to this day, spanning a period of three and a half years, during which time it fell to a low of $0.287.

The soaring price of XRP has also brought about a soaring market value. Not only has it surpassed USDT and Solana with a market value of nearly US$140 billion, ranking third in the cryptocurrency market value, but it has also surpassed Pinduoduo and Mitsubishi UFJ Financial Group compared to traditional companies, rising to 136th among global mainstream assets.

In addition, data shows that XRP has active trading volume on major exchanges. The 24-hour spot trading volume of XRP/KRW on the Korean exchange Upbit reached 3.8 billion US dollars, which is 11 times its BTC trading volume and exceeds the XRP spot trading volume of Binance; the 24-hour spot trading volume of XRP/KRW on Bithumb reached 1.2 billion US dollars, accounting for 32% of its total trading volume.

The xrpscan data also shows that the number of XRP active accounts increased by 100% in November, and its on-chain indicators showed positive signs of recovery. The number of active accounts or unique senders on the XRP network increased from 15,592 on November 1 to 47,044 on November 16. The total number of active accounts in November doubled on average (up 100%) from around 12,000 to 25,000 this month. Similarly, the number of new accounts activated on the XRP ledger in November also increased significantly, indicating a large influx of new users on the network.

Ripple CEO seems to have anticipated the above performance of XRP. As early as early November, he said that the Trump administration may bring new hope to the encryption industry and XRP may usher in a turnaround.

He explained that the Trump administration may change cryptocurrency regulation after taking office and resolve Ripple's years-long legal disputes. He mentioned that XRP has experienced many setbacks since the SEC sued Ripple, but as adverse market factors fade, the situation is changing and XRP's future prospects have become brighter.

2. Multiple favorable factors

1. Expectations of policy relaxation

The expectation of favorable crypto policies after Trump took office continues to bring optimism to the crypto industry, and Ripple CEO also mentioned that Trump has hope of resolving Ripple's years-long legal dispute.

Subsequently, it was revealed that Trump may meet with representatives of the encryption industry such as Ripple CEO to discuss the formulation of US encryption policy.

Ripple and other companies are vying for seats on Trump’s promised crypto commission, seeking to have a say in his planned U.S. policy changes.

The former U.S. CFTC chairman also predicted that the SEC would drop its lawsuit against Ripple, signaling a regulatory shift that could spark a major rally in XRP.

2. XRP ETF launch and financial product listing expectations

Ripple CEO says XRP ETF is destined to be launched.

Bloomberg ETF analysts pointed out that altcoin ETFs such as XRP may need to be approved by the end of 2025. The new SEC leadership in 2025 may be more friendly to cryptocurrencies, and ETF products may be allowed to add staking functions at that time.

Ripple is expected to obtain approval from the New York Department of Financial Services to issue the stablecoin RLUSD, which may be launched on December 4. If approved, Ripple will be able to legally offer RLUSD to the public, making it a major player in New York's regulated digital financial markets and the broader stablecoin ecosystem. This move will also put Ripple in direct competition with other well-known US stablecoin issuers such as Circle, Paxos and Gemini.

WisdomTree will launch XRP ETP on European exchanges. This product will be 100% backed by spot XRP. The assets will be stored in cold wallets and will adopt a dual custody model, managed by a regulated custodian.

In addition, WisdomTree has registered the XRP ETF in Delaware, U.S. 21Shares has also submitted an S-1 form to the U.S. SEC to apply for the launch of the XRP ETF, and Bitwise has submitted an XRP ETF application in Delaware.

Grayscale opens private subscription of trust funds for 17 tokens including XRP to qualified investors. Robinhood US platform relists SOL, ADA and XRP, and newly lists PEPE

3. Boosted by giant whales

The XRP trading volumes on South Korean exchanges Upbit and Bithumb reached US$3.8 billion and US$1.2 billion respectively. Analysis agency Scopescan said that South Korean investors may be the main driving force behind the rise in XRP prices.

In early November, 400 million XRP were unlocked from an unknown escrow wallet, equivalent to approximately $203 million.

At the end of September, Ripple whales purchased more than 470 million XRP in 10 consecutive days.

However, despite the huge increase in XRP and various favorable factors, some analysts still issued a warning:

CryptoQuant analyst: XRP open interest has risen by 37%, which may lead to a decline. The last similar event led to a 17% decline.

Another analysis believes that the current XRP target price may be between $1.95 and $2.05, but it is worth noting that since November 16, XRP price and trading volume have shown an inverse correlation, indicating that XRP is undergoing a distribution phase and market traders may be looking to sell.

summary

As an old project, it is not easy for XRP to explode again. Recently, there are many positive factors surrounding it, whether it is the policy supervision level or the expected launch of financial products such as ETFs, which makes investors have great expectations for it. However, the cryptocurrency circle has always had the investment tradition of speculating on new rather than old. Whether XRP can continue to grow bigger and stronger and create more glory still needs time to test.