Analyst warns of ‘leverage driven pump’ as XRP price soars Analyst warns of ‘leverage driven pump’ as XRP price soars
The crypto issued by Ripple Labs started its climb following the US elections, accumulating a 232% price increase in the past 30 days.
2 min read
Updated: Nov. 29, 2024 at 10:18 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
CryptoQuant community analyst Maartunn highlighted that XRPโs current price increase is a โleverage-driven pump,โ with a similar event in the past ending in a 17% correction.ย
According to CryptoSlate data, XRP was priced at $1.72 as of press time, up 16.4% over the past 24 hours to become one of the best-performing crypto in the top 10.
The open interest in XRP futures increased 37%, along with the recent price surge.
Moreover, XRP climbed 232% in the past 30 days, which is over four times larger than the crypto market average return of 57.3% in the same period.
Bullish news
XRP started its run nearly one week after the US election results, which resulted in former President Donald Trump returning to the White House for a second term.
During his campaign, Trumpโs crypto-friendly approach brought investors optimism, sparking gains in various altcoin prices, including XRP, which crossed the $1 threshold for the first time since November 2021.
Yet, XRP’s most significant pump happened after Nov. 21, when the US Securities and Exchange Commission (SEC) chair Gary Gensler announced he would leave his role on Jan. 20, 2025. In the few hours following his statement, XRP’s price soared by 35%, reaching $1.60.
Under his administration, Gensler took a โregulation by enforcementโ approach, which resulted in the SEC cracking down on major crypto firms, such as Binance, Kraken, Coinbase, and XRPโs issuer Ripple.
Notably, a four-year legal battle between Ripple and the US regulator is still ongoing as the SEC tries to prove in court that the XRP sales were, in fact, an unregistered securities offering.
The major price movement can then cause the lawsuit to be dismissed with the start of a Trump term, making XRP a sound investment.
In addition to the positive news suggesting that XRP may be discarded as a security in the US, Ripple has been making key developments recently.
This week, the firm invested in Bitwiseโs XRP fund and launched the first tokenized money market fund on its XRP Ledger.
Mentioned in this article
Author 
Gino Matos
Gino Matos is a law school graduate and a seasoned journalist with six years of experience in the crypto industry. His expertise primarily focuses on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).
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In this article
Theย XRP Ledgerย is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
Ripple
Ripple is a US-based technology company which develops the Ripple payment protocol and exchange network using XRP, the digital asset native to the XRP Ledger.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Kraken
Kraken is a San Francisco-based digital asset exchange in euro volume and liquidity that trades various currencies, including Canadian dollars, US dollars, British pounds, and Japanese yen.
CryptoQuant
CryptoQuant is a South Korean firm specializing in providing cryptocurrency market analytics and on-chain data to investors and industry participants.
Bitwise
Bitwise Asset Management pioneered the first cryptocurrency index fund and is the leading provider of rules-based exposure to the cryptoasset space..
A businessman, politician, and media personality, Donald John Trump served as the 45th president of the United States from 2017 to 2021.
Gary Gensler is an American government official and former investment banker who President Joseph Biden nominated to chair the U.S.
