The election of Donald Trump as U.S. President was accompanied by a rise in the cryptocurrency market. Notably, the XRP price surged over 40% over the weekend, influenced by several factors including potential changes at the SEC and a technical breakout on the XRP chart.
Crypto Market Reaction to Trump's Election
Following Donald Trump's election, the crypto market received a positive boost. Changes in the leadership of the SEC could lead to more favorable conditions for cryptocurrencies, impacting market growth.
Factors Driving XRP Surge
The rise in XRP's price is attributed to several factors. Firstly, there is discussion about the potential resignation of SEC's Chair, Gary Gensler. Additionally, increased whale activity and a breakout from a multi-year parallel channel contributed to the token's price surge. Technically, XRP has broken out of a six-year symmetrical triangle, indicating a continued upward trend with sustained momentum.
Opportunities and Prospects for XRP
Historically, such breakouts result in significant buying volume, suggesting traders might be optimistic about future price actions. However, questions remain regarding whether the price can reach new all-time highs, given XRP's current market capitalization is approximately $30 billion, far exceeding its 2017 level.
The impact of U.S. policies on the cryptocurrency market and XRP price remains significant. With further positive developments, the token might reach new heights, but investors should consider the increased market capitalization and associated challenges.
