Analyst Warns Of ‘Leverage Driven Pump’ As XRP Price Rises

On By Littum

CryptoQuant community analyst Maartunn highlighted that XRP’s current price rise is a “leverage driven pump”, with a similar event previously ending in a 17% correction.

According to CryptoSlate data, XRP was priced at $1.72 at press time, up 16.4% over the past 24 hours to become one of the top 10 performing cryptos.

Open interest in XRP futures increased by 37% along with the recent price increase.

Furthermore, XRP gained 232% in the past 30 days, which is over four times greater than the crypto market’s average return of 57.3% during the same period.

Bullish news

XRP started its run almost a 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, Trump’s crypto-friendly approach brought investor optimism, sparking gains in various altcoin prices, including XRP, which crossed the $1 threshold for the first time since November 2021.

Still, XRP’s most significant pump happened after November 21, when US Securities and Exchange Commission (SEC) Chairman Gary Gensler announced he would leave his role on January 20, 2025. Within hours of his statement, XRP’s price rose by 35% to reach $1.60.

During his administration, Gensler took a “regulation by enforcement” approach, which resulted in the SEC cracking down on major crypto firms such as Binance, Kraken, Coinbase and XRP’s 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 sale was in fact an unregistered securities offering.

The large price movement could 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 scrapped as a security in the US, Ripple has made important developments recently.

This week the company has invested in Bitwise’s XRP fund and launched the first tokenized money market fund on its XRP Ledger.

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