Ripple token could rise 40% amid Donald Trump’s optimism

Changing regulatory tides in the US and favorable price movements could see XRP rise 40% in the short term.

Since hitting highs of around $2.9 in early December, payments-focused cryptocurrency XRP has lost momentum in what is known in technical analysis as a “descending triangle” pattern.

It is characterized by a lower horizontal support line, which represents constant demand near a certain price level, and the falling upper trend line, which represents flatter price jumps.

According to CMT Association technical analysis theory and analysis, descending triangles often end with a downward break. However, bullish breakouts are more reliable and profitable, resulting in an average profit of 47% to 16%.

“In other words, XRP could rise 40% or more if prices break above the falling upper trendline, signaling a resumption of the previous bull run from early November lows near 50 cents,” explains CoinDesk market analyst Omkar Godbole.

“All bets are off if prices deviate from the pattern and fall below the horizontal support line near $2.00,” Godbole adds.

Social metrics are also very popular. A Wednesday report from sentiment tracking service Santiment said there is “increased crowd optimism” toward the token — higher than Bitcoin (BTC) or Ether (ETH) — according to social media posts and market comments.

Since Trump’s election, the price of XRP has risen over 300%, outperforming other major cryptocurrencies. This increase is largely due to expectations of a crypto-friendly policy environment under Trump that includes easier regulatory paths for local crypto companies – like Ripple Labs, the company closely linked to XRP.

The change in SEC leadership, particularly the exit of Gary Gensler, who is considered a crypto skeptic, could lead to a more favorable regulatory environment for XRP.

Ripple CEO Brad Garlinghouse said last week that the new administration is ending years of regulatory limbo and opening up new domestic opportunities that were previously “frozen” under the old administration.

Ripple Labs has reported that more US deals were signed in the last six weeks of 2024 than in the previous six months, showing a direct “Trump effect” on local business opportunities.

In an interview on Tuesday, Ripple President Monica Long hinted that an XRP exchange-traded fund (ETF) could become a reality “soon” amid perceived shifts toward more favorable crypto regulations under the new Trump administration.