Ripple’s Price Surges 14%, Market Capitalization Rises to Third Largest

DIGIVESTASI – The price of Ripple Labs' XRP surged over 14% to $2.43 (approximately IDR 39,378) on Thursday (January 2) following Bitcoin's new all-time high above $97,000 (approximately IDR 1.57 billion). Ripple’s valuation soared to $240 billion (approximately IDR 3,889.3 trillion).

This increase positioned Ripple as the cryptocurrency with the third-largest market capitalization, overtaking Tether. On the same day, Ripple’s market cap was recorded at $138.56 billion (approximately IDR 2,245.4 trillion), just $400 million (approximately IDR 6.48 trillion) short of Tether.

Ripple’s recovery from a key support level above $2 (approximately IDR 32,410) signals potential for a new all-time high in the near future. Over the past four weeks, Ripple has successfully retested its bullish breakout from its 2021 all-time high.

Technical Analysis

From a technical standpoint, Ripple has formed a symmetrical descending triangle pattern, typically signaling bullish movement. On the weekly chart, Ripple's Relative Strength Index (RSI) has remained above 70% since early November 2024. As XRP rebounds from its 50-day Moving Average (MA), consistent price closures above the declining logarithmic trendline could pave the way for Ripple to achieve the next price target.

Drivers Behind Ripple's Price Rally

According to a report by Coinspeaker, Ripple's price surge was largely driven by the reelection of Donald Trump, known for his pro-crypto stance, as one of the leaders of the United States. Trump has signaled that the U.S. will aim to lead the digital currency industry through clearer and more crypto-friendly regulations.

Additionally, the nomination of Paul Atkins as the new SEC Chairman to replace Gary Gensler has sparked optimism within the Ripple community. Many hope that the ongoing legal case against Ripple will soon be dismissed.

The positive sentiment was further bolstered by a court ruling that determined Ripple’s sales on cryptocurrency exchanges do not constitute investment contracts and are not securities. Over the past two months, Ripple has garnered significant interest from institutional investors and whales seeking to diversify their portfolios within the crypto sector.