The price of Ripple (XRP) has increased 25% in the past 24 hours after Gary Gensler announced that he will resign as Chairman of the United States Securities and Exchange Commission (SEC) on January 20, 2025.
The development brings comfort to the famous “XRP Army,” who have been facing suppressed price movements due to the Gensler-led SEC’s relentless filings against Ripple. But that’s not all that happened.
Ripple bears face significant liquidation following Gensler’s announcement
Gensler’s announcement appears to be a positive development for the broader cryptocurrency market. However, XRP holders appear to benefit the most. This is especially significant given the unresolved legal issues between Ripple and the SEC that have persisted throughout the SEC Chairman’s tenure.
As a result, it is not surprising that XRP price surged and surpassed any other cryptocurrency in the top 10. Furthermore, this development triggered liquidations totaling 26.11 million USD in the last 24 hours.
Liquidation occurs when a trader fails to meet the margin requirement for a leveraged position. This forced the exchange to sell their assets to prevent further losses. In the case of XRP, liquidations mainly result in a short-term squeeze.
A short squeeze occurs when a large number of short positions (traders betting on the price to fall) are forced to close, driving prices higher as they rush to buy back the asset.
At press time, XRP was trading at $1.40 and currently has a market capitalization of $80.64 billion. With Gensler all but leaving, crypto lawyer John Deaton said XRP price could go higher, and the market capitalization could climb to $100 billion.
“XRP will soon reach a market capitalization of 100 billion USD. Times are changing,” Deaton write on X.
Meanwhile, data from CryptoQuant shows that the total amount of XRP deposited into exchanges has decreased significantly. Typically, high values indicate increased selling pressure in the spot market. This is because it shows more assets are being sold, which could push prices lower.
However, because of its low value, XRP holders are refusing to sell off. If this holds, the Token’s value could rise higher than $1.40.
XRP price prediction: Within reach of 2 USD?
According to the 4-hour chart, XRP has been trading in a range between $1.04 and $1.17 since November 18. This sideways movement has resulted in the formation of a bullish flag – a chart pattern for see increased potential.
The bull flag begins with a sharp price increase, forming a flag axis, fueled by massive buying pressure that overcomes the sellers. This is followed by a consolidation phase, where the price corrects slightly and moves within parallel resistance levels, creating a flag structure.
Yesterday, XRP broke out of this pattern, signaling that buyers have taken control of the market. If this momentum continues, XRP price could surpass $1.50, potentially approaching the $2 threshold.
However, this bullish scenario depends on market behavior. If holders decide to take profits, selling pressure could push XRP price below $1, wiping out recent gains.
