FOMO, funding rates, SEC battle

XRP began its strong bull run just after the broader crypto market began to cool.

XRP (XRP) reached an eight-month high of $0.73 late Tuesday and soon its price began to fall. The asset surpassed USDC’s $36 billion market cap, becoming the seventh-largest cryptocurrency.

XRP price | Source: crypto.news

Despite the slight price drop, XRP is still up 8% in the last 24 hours and is trading at $0.654 at the time of writing. Its market value currently stands at $37 billion.

XRP’s daily trading volume has nearly tripled to over $12 billion. High trading volume usually leads to high volatility.

According to Santiment, one of the most important factors for XRP to exceed the $ 0.74 barrier is the fear of missing the opportunity.

🥳 The XRP community has been abuzz with excitement and controversy surrounding the crypto’s #7 market cap. More than 4% of all cryptocurrency discussions are about XRP, following a +45% rise in an 8-day period.

Exceeding the yearly high of $0.74 in March will largely depend on the persistence of FOMO… pic.twitter.com/IubbdmJY8n

— Santiment (@santimentfeed) November 13, 2024

At this point, more than 4% of crypto-related discussions on social platforms are about XRP as its price approaches its March high.

Data shared by Santiment shows two similar increases in XRP’s social dominance. The first of these occurred in early August, when XRP rose from $0.44 to over $0.60; This indicates a local peak.

The second increase occurred in early October when the XRP price dropped from $0.64 to $0.52; This shows the local bottom.

If the XRP price gains bullish momentum before the social spike fades, the asset is likely to reach the $0.74 region.

Another important catalyst could be the XRP funding rate on major crypto exchanges. For example, the asset’s Binance funding rate shows a very high ratio of long positions to short positions. This could indicate a potential price correction if the amount of long liquidations exceeds short positions.

XRP’s rally is also linked to Donald Trump’s win in the US presidential election. The president-elect has vowed to unseat Gary Gensler, chairman of the U.S. Securities and Exchange Commission.

The SEC, under a crypto-friendly chairman, could potentially end its legal battle with Ripple, the company behind XRP, triggering another wave of FOMO among investors.

Most importantly, Trump is considering Robinhood chief legal officer Dan Gallagher to replace Gensler at the SEC.