Ripple targets three-year high as XRP rallies to new yearly peak
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Ripple’s price surged by 10% on Friday, reaching a new yearly high of $1.43, a level not seen since May 2021. This rally marks a continuation of Ripple’s strong upward momentum, driven by multiple catalysts.
SEC Chair Gary Gensler’s Resignation Announcement: The news of Gensler’s departure, effective January 2025, has boosted optimism for regulatory relief in the crypto sector. Ripple’s price jumped nearly 13% on Thursday as investors anticipated a potential resolution to the ongoing SEC lawsuit and a shift towards a more crypto-friendly regulatory environment.
WisdomTree Physical XRP ETP Launch in Europe: The launch of a new XRP-backed exchange-traded product (ETP) in Europe enhances accessibility and liquidity for XRP in regulated markets. This move is expected to attract institutional and retail interest, with high expectations for similar products to launch in the US.
Technical Outlook
Key Levels and Resistance Zones:
XRP broke above the crucial $1.27 resistance, which marked the 50% Fibonacci retracement of its decline from April 2021’s high of $1.96 to June 2022’s low of $0.287. With a current weekly high of $1.43, XRP is now testing the next major resistance near $1.40. A weekly close above $1.40 could propel XRP toward the $1.96 mark, representing a three-year high and a significant technical milestone.
Relative Strength Index (RSI): The weekly RSI stands at 83, signaling an overbought market. This suggests a potential near-term correction before further upside momentum can be sustained.
Risk Management:Traders should monitor for a pullback if the RSI moves out of overbought territory, which could signal a consolidation phase or a short-term price dip.
On-Chain Metrics and Network Activity
Ripple’s bullish trajectory is further supported by strong on-chain activity
Record-High DEX Volume on XRPL: On November 15, DEX trading volume reached $3.5 million, driven by the XRPL’s automated market maker (AMM) DEX, launched in May 2024.
Active Addresses Spiking: The number of active addresses on the XRPL network reached its highest levels of the year, signaling increased network utility and adoption.
Futures Open Interest (OI): According to Coinglass data, Ripple’s futures open interest surged from $1.81 billion on Thursday to $2.43 billion on Friday, marking a new all-time high. This rising open interest reflects heightened trader participation and new capital inflows, adding further credibility to the ongoing uptrend.
Outlook and Considerations
Ripple’s current rally shows strong fundamental and technical alignment, with key resistance at $1.96 in sight. While the overbought RSI signals caution, robust on-chain metrics and improved market sentiment support the case for continued growth. Traders should monitor weekly closes and watch for potential pullbacks, which could present re-entry opportunities or confirm the sustainability of the rally.
SEC Chair Gary Gensler’s Resignation Announcement: The news of Gensler’s departure, effective January 2025, has boosted optimism for regulatory relief in the crypto sector. Ripple’s price jumped nearly 13% on Thursday as investors anticipated a potential resolution to the ongoing SEC lawsuit and a shift towards a more crypto-friendly regulatory environment.
WisdomTree Physical XRP ETP Launch in Europe: The launch of a new XRP-backed exchange-traded product (ETP) in Europe enhances accessibility and liquidity for XRP in regulated markets. This move is expected to attract institutional and retail interest, with high expectations for similar products to launch in the US.
Technical Outlook
Key Levels and Resistance Zones:
XRP broke above the crucial $1.27 resistance, which marked the 50% Fibonacci retracement of its decline from April 2021’s high of $1.96 to June 2022’s low of $0.287. With a current weekly high of $1.43, XRP is now testing the next major resistance near $1.40. A weekly close above $1.40 could propel XRP toward the $1.96 mark, representing a three-year high and a significant technical milestone.
Relative Strength Index (RSI): The weekly RSI stands at 83, signaling an overbought market. This suggests a potential near-term correction before further upside momentum can be sustained.
Risk Management:Traders should monitor for a pullback if the RSI moves out of overbought territory, which could signal a consolidation phase or a short-term price dip.
On-Chain Metrics and Network Activity
Ripple’s bullish trajectory is further supported by strong on-chain activity
Record-High DEX Volume on XRPL: On November 15, DEX trading volume reached $3.5 million, driven by the XRPL’s automated market maker (AMM) DEX, launched in May 2024.
Active Addresses Spiking: The number of active addresses on the XRPL network reached its highest levels of the year, signaling increased network utility and adoption.
Futures Open Interest (OI): According to Coinglass data, Ripple’s futures open interest surged from $1.81 billion on Thursday to $2.43 billion on Friday, marking a new all-time high. This rising open interest reflects heightened trader participation and new capital inflows, adding further credibility to the ongoing uptrend.
Outlook and Considerations
Ripple’s current rally shows strong fundamental and technical alignment, with key resistance at $1.96 in sight. While the overbought RSI signals caution, robust on-chain metrics and improved market sentiment support the case for continued growth. Traders should monitor weekly closes and watch for potential pullbacks, which could present re-entry opportunities or confirm the sustainability of the rally.