Why Can't This Friend Be Summarized - Breaking News

“Ripple Expected to Continue Rising if it Stably Breaks $2.75”

“Possibility of Further Decline if it Falls Below $2.5”

Photo = Shutterstock

After Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), known as the 'Grim Reaper of Cryptocurrency (Virtual Assets)', announced his resignation in January next year, altcoins (virtual assets other than Bitcoin), including Ripple (XRP), have been on a rebound. Market experts analyze that the influx of funds and trading volume into the altcoin market is rapidly increasing, raising expectations for a rise.

As of 1:25 PM on the 4th, the price of XRP is trading at $2.5573 on the Binance USDT market, down 7.11% from the previous day. At the same time, the relative value of Ripple compared to Bitcoin (XRP/BTC) fell by 7.05% from the previous day.

On this day, Bitcoin (BTC) dominance (the proportion of Bitcoin in the total market capitalization of cryptocurrencies) was 55.19%, showing a downward trend over the past week. The recent rise in Bitcoin prices and the resulting decrease in dominance can be interpreted as many altcoins outperforming Bitcoin.

Meanwhile, the Kimchi Premium (the price difference between overseas exchanges and domestic exchanges) of major virtual assets such as Bitcoin is recorded at -0.57%. In the domestic market, virtual assets are traded at slightly lower prices than global prices.

“Ripple Soars on Gensler's Resignation News…Expectations for Spot ETF and Stablecoin Launch Increase”

Photo = Gary Gensler X Capture

After Gary Gensler, the SEC chairman who was unfriendly to virtual assets, announced on the 22nd of last month that he would resign in January next year, several altcoins, including Ripple, which had been embroiled in securities controversy, have recorded explosive growth rates recently. Chairman Gensler is scheduled to resign on the day Trump takes office (January 20 next year). After the news was delivered, Ripple surged 125% until today and ranked third in cryptocurrency market capitalization. During the same period, Stellar (XLM) rose 123% and Algorand (ALGO) rose 172%.

Expectations are growing that Ripple may launch a spot exchange-traded fund (ETF) and its own stablecoin 'RLUSD'. Previously, Bitwise, Canary Capital, 21Shares, and WisdomTree submitted applications for Ripple spot ETFs. There are also predictions that the issuance of Ripple spot ETFs by U.S. asset management companies may accelerate. Nate Geraci, CEO of The ETF Store, said, “The number of Ripple spot ETF issuers (submitting applications) is expected to continue to increase in the future.”

Additionally, on the 1st, U.S. economic media Fox Business quoted sources as saying, “The New York Department of Financial Services (NYDFS) is likely to approve Ripple's stablecoin RLUSD soon.” The crypto-specialized media The Crypto Basic predicted, “RLUSD may utilize XRP as its own reserve,” adding, “This will have the effect of maintaining XRP's circulating supply while reducing the total supply.” The launch of RLUSD by Ripple Labs is explained as a favorable factor that could boost Ripple's price.

Both whale investors and individual investors have accumulated Ripple in large quantities over the past three weeks / Photo = Santiment X Capture

As optimistic prospects spread, the buying pressure for Ripple has been strongly inflowing into the market. On the 2nd, cryptocurrency data analysis company Santiment announced on X (formerly Twitter), “Investors holding between 1 million and 10 million Ripples have accumulated 679.1 million XRP over the past three weeks.” The Ripple they accumulated is worth $1.66 billion (about 2.33 trillion won). Santiment added, “As both whale investors and individual investors have been accumulating quantities recently, Ripple's price has reached its highest level in about seven years since 2018.”

Meanwhile, there are also observations that the cryptocurrency market will continue to rise as U.S. President-elect Donald Trump is expected to pursue crypto-friendly policies. On the 2nd, Bloomberg reported, “Trump is expected to create a favorable environment for digital assets,” adding, “Trump has declared that he will create a crypto-friendly regulatory agency, and after Trump won the presidential election, the market value of cryptocurrencies increased by about $1.2 trillion (about 1,683 trillion won).”

‘To the Moon’ Ripple, Up Over 360% in a Month…Will It Reach $3 at This Rate?

Photo = Shutterstock

Market experts predict that if Ripple stably re-breaks $2.75, it is likely to continue rising, but if it falls below $2.5, the possibility of further decline will increase. On-chain analysts have analyzed that whale investors are recently transferring large amounts of Ripple to exchanges.

Recently, Ripple is catching its breath and challenging for further gains. Ayush Jindal, a researcher at NewsBTC, said, “Ripple hit a short-term peak at $2.869 and is consolidating near $2.7, aiming for further gains,” adding, “If Ripple breaks the resistance line of $2.75, it is likely to continue rising. The resistance lines for the rise are located at $2.85, $2.96, and $3.”

The analyst added, “If Ripple fails to break the resistance line, it could fall to $2.65 and $2.52,” adding, “If it breaks below $2.52, it could fall further to $2.45 and $2.3.”

There are also forecasts that Ripple has entered the overbought territory and volatility may increase for the time being. Rakesh Upadhyay, a researcher at Cointelegraph, predicted, “Ripple has increased the likelihood of reaching $3 by breaking through the major resistance of $1.97. It could then test $3.84.”

He added, “Ripple has entered the overbought territory with a sharp rally in recent days, and the likelihood of a sharp retracement has increased,” adding, “Investors should be prepared for increased volatility and be cautious.” If Ripple undergoes a short-term adjustment, the area around $2 is expected to be a key support level.

There are also forecasts that the soaring Ripple is expected to realize profits for long-term investors. Alex Kuptsikevich, a market analyst at FXPro, analyzed, “XRP has soared 360% over the past 30 days and its price is flying to the moon,” adding, “Coins such as Ripple and Litecoin (LTC) are rising on expectations that the U.S. will ease regulations. In the futures market, a ‘short squeeze’ is occurring, boosting their upward momentum.”

The analyst added, “The current price level seems to be a good point for long-term investors to realize profits and sell their holdings,” adding, “On the other hand, the risk may be high for new and short-term investors entering.”

Meanwhile, a short squeeze refers to when investors who shorted during a rise in Bitcoin prices buy it to cover their short positions or reduce losses.

Altcoin Market, Market Cap and Trading Volume Surge…Has the ‘Altcoin Season’ Begun?

While the leading cryptocurrency Bitcoin (BTC) is catching its breath ahead of $100,000, the trading volume and market capitalization of altcoins (cryptocurrencies other than Bitcoin) are increasing significantly. As expectations for an altcoin rebound rise, there are predictions that the altcoin cycle is imminent.

The market capitalization of virtual assets excluding Bitcoin and Ethereum is surging. / Data = Bitfinex

On the 25th of last month, global cryptocurrency exchange Bitfinex stated in a research report, “The total market capitalization of altcoins has continued its upward trend recently, approaching the all-time high of $984 billion (about 1,372 trillion won) in May 2021,” adding, “The shift of investment funds from Bitcoin to altcoins is signaling the start of the 'altcoin season'.”

The report continued, “In particular, the market capitalization of altcoins excluding Bitcoin and Ethereum has surged recently, showing the largest increase since April 2021,” adding, “(With the inflow of funds) large-cap 'blue-chip' altcoins such as Solana have broken through major resistance levels and set new all-time highs.” The report predicted that the momentum of altcoins will be further strengthened as the participation of individual investors has increased recently.

Altcoin trading volume / Data = Kaiko

As altcoin trading volume increases significantly, expectations for a rebound are also rising. Cryptocurrency data analysis company Kaiko analyzed, “The proportion of altcoin trading volume in the total cryptocurrency trading volume has soared to 74%, reaching a three-year high,” adding, “Altcoin trading volume began to surge from early November. The cryptocurrency market has been led by Bitcoin, but recently risk appetite has increased further.”

According to Kaiko, the weekly trading volume of the top 50 altcoins by market capitalization recorded $305 billion (about 425 trillion won) in early November, the highest level since October 2021.

Alex Kuptsikevich, a market analyst at FXPro, analyzed, “After Bitcoin underwent a short-term adjustment recently, the rebound of altcoins continued,” adding, “The altcoin season index has also risen sharply as investors move to altcoins such as Ethereum.”

On this day, according to Blockchain Center, the ‘altcoin season’ index, a strong indicator of the altcoin market, rose 23 to 86 in a week, recording the highest level since March. The altcoin season is considered to have arrived if the altcoin season index exceeds 75.

There are also analyses that the volatility of the altcoin market may intensify for the time being. Cryptocurrency strategist Michael van de Poppe predicted, “The cryptocurrency market is entering a bull market. The value of altcoins compared to Bitcoin is likely to continue rebounding,” adding, “The revived momentum could lead to increased volatility.”

Kang Min-seung, Bloomingbit reporter minriver@bloomingbit.io