Ripple Token Could Rise 40% Amid Donald Trump’s Optimism

Shifting regulatory tides in the US and favorable price action could set XRP up for a 40% move higher in the near term.

Since hitting highs near $2.9 in early December, payments-focused cryptocurrency XRP has lost steam to carve out what’s known as a “descending triangle” pattern in technical analysis.

It is identified by a lower horizontal support line that represents consistent demand near a certain price level and the descending upper trend line that represents lower price bounces.

According to the CMT Association’s theory and analysis of technical analysis, descending triangles often end with a downward break. However, bullish breakouts are more reliable and profitable, yielding an average gain of 47% to 16%.

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

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

Social metrics are also on the rise. ONE Wednesday’s report of sentiment tracking service Santiment said there is an “increased level of crowd optimism” toward the token, based on social media and market commentary — higher than for bitcoin (BTC) or ether (ETH).

Since Trump’s election, XRP has seen its price rise by over 300%, outpacing other major cryptocurrencies. This increase is largely attributed to the expectation of a crypto-friendly policy environment under Trump, which includes easier regulatory paths for local crypto companies – such as Ripple Labs, the firm closely related to XRP.

The change in SEC leadership, especially the exit of Gary Gensler, who has been seen as crypto-skeptic, may lead to a more favorable regulatory environment for XRP.

Ripple CEO Brad Garlinghouse said last week that the incoming government will end years of regulatory limbo and open up new domestic opportunities that were previously “frozen” under the old administration.

Ripple Labs has reported signing more US deals 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 signaled that an XRP exchange-traded fund (ETF) could “soon” become a reality amid perceptions of a shift toward more favorable crypto regulations under the incoming Trump administration.