US President Donald Trump mentioned XRP in his Tuesday post on Truth Social, capturing the CoinDesk article on this altcoin.
The post by Trump outlined the XRP’s growing involvement in the US business space. This quickly drew attention with over 9,000 likes and 2,500 replies. Most users supported XRP inclusion into the country's crypto reserve. Unsurprisingly, the XRP army became optimistic that the post endorsed this altcoin into the imminent elevation to the moon.
The Trump post turned a catalyst, with XRP price up 5.7% to change hands at $2.63, to elevate its market capitalization to $152.4 billion per CoinGecko data. Additionally, scrutiny of the 24-hour trading volume shows it slid 2.80% to $4.147 billion, suggesting a decline in the market activity.
XRP Price in USD Source: CoinGecko
Ripple Odds Under Procrypto Administration
Beyond the Trump post, Ripple, the firm behind the XRP token, has sustained an aggressive campaign to scale its US operations. Its chief executive, Brad Garlinghouse, attributes the upward momentum to the 'Trump effect.'
A recent publication by CoinDesk spotlighted that US business deals signed since mid-November surpass those signed in the preceding six months. Such suggests anticipation of a crypto-friendly environment under Trump, unlike the burdensome tenure of the Joe Biden administration.
Trump issued pro-crypto executive orders within a few days of the White House return. The move aligns with the promises issued during the GOP campaigns, which include eliminating regulatory ambiguity, delivering stablecoin-specific legislation, and creating a crypto reserve. Ripple is betting huge on Trump's policies to bolster crypto innovation, leading to increased hiring.
Despite this optimism, XRP still confronts legal uncertainties. The SEC is pursuing an appeal challenging the July 23 ruling that XRP retail sales are not securities. A regulatory decision in SEC's favour could affect XRP's trajectory.
SEC-Led Reforms
The post by Trump coincides with the optimism that the SEC will approve the XRP spot exchange-traded funds (ETFs) filings. The securities watchdog has recently acknowledged filings from Grayscale, Bitwise, and Coinshares, triggering speculation for ETF approval this year.
The exit of Gary Gensler on Jan 20 allowed Donald Trump to appoint Mark Uyeda as interim chair before Paul Atkins takes over. This has not hindered Uyeda from taking decisive actions, including establishing a crypto council to address regulatory ambiguity and usher comprehensive legislation on digital assets. This involves repealing the controversial Staff Accounting Bulletin (SAB) 121, which is considered retrogressive by hindering banks from custody services for crypto holders.
Additionally, the SEC downsized the legal enforcement team behind the infamous regulation through an enforcement approach. A notable initiative has been reassigning the lead litigator to the tech division. Moving Jorge Tenreiro signals a shift in the crypto enforcement approach, given that he steered a half-dozen lawsuits leveled against crypto exchanges.
The SEC faces increased scrutiny from the Elon Musk-led Department of Government Efficiency (DOGE). This heightens the pressure on the US regulatory agencies to clarify their cryptocurrencies' stance.
XRP 3-Month Rally
A look into the three-month chart shows XRP's 140% surge leaves Bitcoin trailing with a 4% gain per MarketWatch data. Political and legal tailwinds drive the contrasting bullish sentiment in this altcoin. Furthermore, heightened whale activity boosts confidence as they position themselves for an XRP uptrend. Prominent chartist Ali Martinez shared on-chain data indicating 520 million XRP tokens purchased by whale investors as they warm up for XRP ETF approval.
Meanwhile, the recent developments within the regulatory sphere add a new dimension to XRP dynamics in the ongoing cycle. Technical analyst Dark Defender highlights the conclusion of the consolidation phase with the current structure hinting at a "wave 3" pattern. This analyst predicts this could propel XRP prices 129% up to a new peak at the $5.85 target.
Why This Matters
The Trump post highlighting the XRP is an endorsement of this altcoin on social media, further underscoring its rising reputation as an investable asset within the US market. Further, it portrays XRP's potential input towards reshaping the investment and regulatory landscape.
As Ripple expands its strategic footprint and ETF approvals become likely, XRP is positioned at the focal point of the evolving crypto ecosystem.
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