XRP and XLM See Record Gains Amid Regulatory Speculation
Ripple’s Legal Dynamics Drive Market Frenzy
Ripple’s XRP soared beyond $1, peaking at $1.22, its highest level since November 2021. This 80% weekly surge propelled XRP back into the top six cryptocurrencies by market capitalization, overtaking Dogecoin. On November 16, XRP surged 22%, far outpacing Bitcoin and Ethereum, which posted modest gains. Speculation surrounding regulatory shifts and high-profile meetings played a significant role in this rally.
Rumors of a potential meeting between Ripple CEO Brad Garlinghouse and former U.S. President Donald Trump gained traction after Garlinghouse liked a related post. During a FOX Business interview, Garlinghouse’s ambiguous remarks left room for interpretation, fueling investor optimism about Trump’s possible pro-crypto stance if he returns to the White House.
Adding to the speculation, hints of SEC Chair Gary Gensler’s potential resignation by year-end sparked discussions of a regulatory pivot. Under Gensler’s leadership, Ripple has been embroiled in a high-stakes legal battle with the SEC, making his potential departure a critical market narrative.
XRP’s rally had a ripple effect across the market, with bullish sentiment lifting other altcoins. Cardano’s ADA recorded a 14% gain within 24 hours, reflecting broader market enthusiasm. Analysts speculate that a leadership change at the SEC could lead to case dismissals or favorable settlements for Ripple and other major players like Coinbase and Binance, potentially easing regulatory pressures on the entire crypto industry.
Stellar’s XLM Gains Momentum in XRP’s Wake
Stellar’s XLM followed suit, with trading volume soaring to $2.96 billion, the highest since May 2021. This surge, driven by XRP’s momentum, pushed XLM’s price up 30% to $0.23 before experiencing a slight pullback. The strong correlation between XRP and XLM, rooted in their shared history through co-founder Jed McCaleb and a focus on cross-border payments, played a pivotal role in XLM’s rise.
Technical indicators point to continued strength for XLM. The cryptocurrency’s open interest hit $75.05 million, its highest level since Ripple’s partial legal victory in July 2023. Additionally, Ichimoku Cloud analysis shows XLM trading above the cloud, signaling robust support with the potential for further gains to $0.24. However, analysts caution that profit-taking could push prices down to $0.16, underscoring the volatile nature of the market.
XRP and XLM’s parallel movements highlight the interconnected dynamics of speculative activity and regulatory developments. With potential shifts in U.S. regulatory leadership on the horizon, investor sentiment remains cautiously optimistic. Yet, amid growing volumes and open interest, market participants are urged to navigate the inherent risks of volatility.
This article has been refined and enhanced by ChatGPT.
