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XRP’s price is on fire, surging 350% in 2024 — what’s fueling this rally, and could it be setting the stage to surpass Ethereum?
XRP soars to a 6-year high
Ripple (XRP) has been riding a massive bullish wave, with the price of XRP surging to an incredible 6-year high of $2.71 on Dec. 2, up from just $0.61 at the start of the year, reflecting nearly 350% gains for early 2024 investors.
This bullish momentum has led XRP to dethrone Tether (USDT) as the third-largest crypto by market cap, with XRP currently sitting at a market cap of $154 billion compared to Tether’s $134 billion.
Even with a slight retrace to $2.68 as of this writing, XRP has posted a remarkable 90% gain in just the past week, making it the second best-performing crypto among the top 100 coins by market cap.
Ripple’s recent rally aligns with the election of Donald Trump as the 47th president of the U.S., the resignation of Gary Gensler as SEC chair, and a growing sense of optimism in the crypto community.
Gensler’s departure marked the end of a regulatory era that many in the industry felt was overly combative, and Ripple, which has been embroiled in a long-standing legal battle with the SEC, seems to be emerging as a major beneficiary of this shifting dynamic.
But that’s not all. According to data from CoinGlass, XRP experienced $85.5 million in future contract liquidations in the past 24 hours, outpacing even Bitcoin’s nearly $73 million. Interestingly, about $55 million of these liquidations were shorts — bets that XRP’s price would fall.
Liquidations occur when traders betting on price movements (either up or down) can no longer maintain their positions due to market shifts, and the fact that so many short positions were wiped out indicates a strong bullish sentiment as prices rose dramatically, forcing these traders to exit their positions at a loss.
Adding more fuel to the fire, according to Ki Young Ju, CEO of CryptoQuant, Coinbase has played a key role in driving XRP’s rally, noting that over the last 30 days, Coinbase has shown a price premium on XRP ranging from 3% to 13%.
A premium like this means XRP is trading higher on Coinbase than on other exchanges, signalling strong demand from U.S.-based institutional and retail investors.
Meanwhile, Korean exchange Upbit, which boasts a colossal XRP investor base, has shown no comparable premium, hinting that the rally might be more U.S.-driven for now.
With so much happening around Ripple, where is XRP heading next? Let’s dive deeper into the data, analyze the market sentiment, and explore what this means for Ripple’s price predictions in the coming days.
Ripple’s RLUSD stablecoin nears launch
Ripple’s long-awaited stablecoin, RLUSD, appears to be on the verge of becoming a reality with reports suggesting that New York’s Department of Financial Services is close to granting its approval.
According to Fox Business, Ripple is preparing for a potential launch as early as Dec. 4. If this happens, it will mark a crucial moment for the company, positioning RLUSD as a direct competitor to established stablecoins like USDC and USDT.
Stablecoins, by design, are pegged to fiat currencies like the U.S. dollar, offering the predictability of traditional money combined with the flexibility of blockchain technology.
RLUSD would enable Ripple to provide a stable alternative for users seeking the benefits of digital assets without the price volatility associated with XRP or other cryptocurrencies.
Adding fuel to the buzz are rumours that Ripple might use its massive XRP escrow holdings to establish the initial reserves for RLUSD.
https://twitter.com/DelCrxpto/status/1863405589230957052
Ripple currently holds billions of XRP in escrow, periodically released to manage liquidity and fund operations. If the company chooses to lock up a large portion of this escrow to back RLUSD, it could have several noteworthy effects.
First, it would provide substantial collateral for the stablecoin, reinforcing trust in its value. Second, it could reduce the circulating supply of XRP, creating scarcity that might drive price appreciation. Lastly, this approach would enhance the liquidity of the XRP Ledger (XRPL), further increasing its appeal to developers and institutional partners.
Meanwhile, regulatory approval from the NYDFS would also give RLUSD a strong edge. In an environment where stablecoins face constant scrutiny, receiving the green light from one of the most respected financial regulators could make RLUSD an attractive option for risk-averse businesses and institutions.
Whales, wallets, and ETFs
Ripple’s resurgence isn’t confined to its soaring XRP price or the anticipated launch of its RLUSD stablecoin. A standout trend driving this momentum is the large accumulation of XRP by large investors.
According to Santiment, wallets holding between 1 million and 10 million XRP have amassed an additional 679.1 million tokens in just three weeks — a haul currently valued at $1.83 billion — hinting that traders are likely betting on further growth in XRP’s value or utility.
https://twitter.com/santimentfeed/status/1863481287559819656
Adding to the buzz is the record-breaking rise in XRP wallet activity. For the first time in Ripple’s history, the number of non-empty XRP wallets has surpassed 5.5 million.
With more users and institutions engaging with XRP, whether for trading, payments, or leveraging the XRPL for decentralized applications – adoption is growing.
Ripple’s influence is also growing within traditional finance, fueled by increasing interest in XRP-focused investment products.
WisdomTree, a leading asset management firm, has filed an application with the SEC to launch an XRP spot exchange-traded fund.
https://twitter.com/EleanorTerrett/status/1863559841341485547
WisdomTree’s filing joins a wave of similar applications from firms like Bitwise, 21Shares, and Canary Funds, signalling a strong push for regulated XRP financial products.
If launched, an XRP spot ETF, similar to Bitcoin and Ethereum ETF, would allow investors to gain exposure to XRP without directly owning it, lowering the barrier to entry for traditional financial players.
XRP price predictions: how high could it go?
XRP has been riding a strong bullish wave in the last few weeks, but the big question now is: where could the price go from here? While XRP is currently sitting at $2.68, it still trades about 30% below its all-time high of $3.84, achieved in January 2018.
Notable crypto analyst Dark Defender has identified a Fibonacci-based target of $5.85, marking it as a key level in XRP’s multi-wave price structure.
He mentioned that XRP has consistently met critical milestones, including its recent surge past $1.88, and highlights support levels at $1.88 and $2.13 as potential safety nets in the event of a retrace.
Dark Defender’s roadmap even charts a long-term target of $18.22, an ambitious projection from current price levels.
Similarly, analyst Javon Marks shares a bullish outlook, pointing out that XRP’s recent break above the $2.47 resistance level has set the stage for a climb toward $4.80. He suggests that sustaining a hold above $2.47 could pave the way for further upward momentum.
https://twitter.com/JavonTM1/status/1863392390133764574
Meanwhile, renowned trader Peter Brandt has offered a strikingly audacious projection, suggesting XRP could reach as high as $24 based on his technical analysis.
While Brandt hasn’t attached a timeline to this target, his forecast hinges on XRP’s liquidity, adoption, and sentiment—factors that, under the right conditions, can drive exponential price movements.
While these forecasts spark excitement, it’s crucial to approach them with caution. XRP’s recent rally has been powered by a mix of technical breakouts, whale accumulation, and positive sentiment, but the unpredictable nature of markets remains a key factor.
Macroeconomic challenges such as rising interest rates, economic uncertainty, or potential regulatory setbacks could temper market enthusiasm.
As always in crypto, investors should exercise caution, diversify their portfolios, and make decisions based on data and risk tolerance. The golden rule applies: never invest more than you can afford to lose.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
