Ripple’s XRP Price Surges as the SEC Conclusion Deadline Comes on Jan. 15

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As the cryptocurrency market navigates through a period of heightened uncertainty, Ripple's XRP has emerged as a standout performer, surging by 12% in a single day. This impressive rally is fueled by a confluence of factors, including significant whale accumulation, optimistic speculations surrounding a potential XRP ETF listing in the United States, the anticipated regulatory shift with the upcoming inauguration of President-elect Donald Trump, and the approaching deadline for the SEC's appeal in the XRP lawsuit.

 

Quick Take

  • The SEC is nearing the January 15 deadline to file its appeal-related opening brief in the XRP lawsuit, a decision that could significantly impact cryptocurrency regulation in the U.S. 

  • Large holders have increased their XRP holdings by 37.4% since November 2024, indicating strong confidence in XRP's future prospects.

  • Speculation around an XRP ETF listing could attract up to $14 billion in new assets, enhancing institutional interest and market liquidity.

  • The incoming Trump administration and the appointment of Paul Atkins as SEC Chair are expected to create a more supportive regulatory environment for XRP and Ripple.

  • Ripple's approval of its stablecoin RLUSD, strategic acquisitions, and expansion of its U.S.-centric operations position XRP for sustained growth and increased utility.

SEC Opening Brief Deadline Approaches in XRP Lawsuit

As the January 15, 2025 deadline looms, the US Securities and Exchange Commission (SEC) is poised to file its appeal-related opening brief in the high-stakes XRP lawsuit against Ripple. This pivotal decision will determine whether the SEC continues to challenge the July 2023 court ruling that declared XRP sales are not securities. The outcome holds profound implications for cryptocurrency regulation in the United States, potentially shaping the future landscape for digital assets. Complicating matters is the SEC’s leadership transition, with current Chair Gary Gensler stepping down on January 20 and crypto-friendly Paul Atkins expected to succeed him under the incoming administration. This change may influence the SEC’s stance on Ripple and broader crypto policies.

 

The SEC initiated its legal action against Ripple in December 2020, accusing the company of offering XRP as an unregistered security. Central to the case are controversial statements by former SEC official William Hinman, who previously declared Bitcoin and Ethereum as non-securities in 2018. Questions about Hinman’s connections to the Ethereum-linked law firm Simpson Thacher and the SEC’s attempts to withhold related documents have raised concerns about the agency’s transparency and impartiality. Should the SEC decide to appeal, the lawsuit could set critical legal precedents, potentially delaying regulatory clarity for other cryptocurrencies and influencing future enforcement actions. Meanwhile, Ripple continues to advocate for a swift resolution to provide much-needed certainty for the broader crypto ecosystem, making the SEC’s impending decision a focal point for industry stakeholders.

 

XRP Whale Accumulation Signals Strong Confidence

XRP whale transactions on the rise | Source: Santiment 

 

Data from crypto analytics firm Santiment reveals that XRP's recent price spike can be largely attributed to "enormous accumulation" by whales. Specifically, wallets holding between 1 million and 10 million XRP tokens have collectively amassed 1.43 billion XRP since November 12, 2024—a staggering 37.4% increase. This substantial accumulation by large holders underscores a strong belief in XRP's long-term potential, signaling bullish sentiment amidst broader market volatility.

 

At the time of publication, XRP was trading at $2.83, a level not seen since early 2018, according to CoinMarketCap. Santiment highlighted that XRP reached $2.69 for the first time since December 17, 2024, marking it as the third-largest cryptocurrency by market capitalization to achieve this milestone.

 

XRP Price Prediction: Is $5 the Next ATH Level? 

XRP/USDT price chart | Source: KuCoin

 

With these robust fundamentals, XRP is well-positioned for continued growth in 2025. Technical analysts observe that XRP is forming a bullish pennant pattern, a technical indicator that often precedes significant upward movements. If the pattern completes, XRP could see a substantial price increase, potentially reaching $5 within the first quarter of 2025.

 

JPMorgan's projections, combined with strong whale accumulation and positive regulatory signals, suggest that XRP could outperform many of its peers. Ripple's strategic initiatives in tokenization and interoperability, coupled with the expected regulatory easing, provide a solid foundation for sustained growth.

 

Read more: XRP Price Prediction 2025 - Could XRP Cross $8 in 2025?

 

Ripple and XRP’s Upcoming Developments to Watch

1. XRP ETF Speculations and Strong Institutional Interest

The anticipation of an XRP ETF listing in the U.S. continues to drive XRP's price surge. Sean Dawson, Head of Research at Derive, suggests that the momentum is likely due to a potential XRP ETF listing this year. As Bitcoin investors seek alternative assets, capital may flow into altcoins like XRP, further fueling bullish sentiment.

 

“The key question here remains the uncertainty of investor demand for additional products and whether new crypto ETP launches will matter,” wrote JPMorgan analysts in a note. 

 

JPMorgan's recent report supports this optimism, projecting that XRP and Solana (SOL) ETFs could attract between $4 billion and $8 billion in net new assets within their first year. The bank estimates that XRP ETFs could draw up to $14 billion in inflows based on current market capitalizations, positioning XRP as a significant player in the crypto ETF landscape.

 

2. Ripple vs. SEC: Regulatory Shifts Under a New Administration

The impending change in the U.S. regulatory environment is poised to transform XRP's outlook. With President-elect Donald Trump set to take office, Ripple and XRP could benefit from a more crypto-friendly administration. The appointment of Paul Atkins as the new SEC Chair is particularly significant, as Atkins is expected to be more supportive of cryptocurrency innovation. This could lead to clearer regulatory guidelines and a reduction in enforcement actions against Ripple.

 

Jason Jones from Ripple highlighted that the new administration may issue executive orders to loosen crypto regulations, eliminate restrictive accounting rules, and support crypto freedoms. These measures are anticipated to create a favorable environment for Ripple’s operations and bolster XRP’s market performance.

 

3. Ripple's Strategic Moves with RLUSD Stablecoin Launch

Ripple has strategically advanced its digital payment platform by securing final approval from the New York Department of Financial Services (NYDFS) for its stablecoin, RLUSD, pegged to the U.S. Dollar. This milestone is expected to attract a broader user base and increase XRP’s utility.

 

Additionally, Ripple has realigned its operations to capitalize on anticipated regulatory changes. CEO Brad Garlinghouse announced a strategic shift towards a U.S.-centric workforce, with 75% of job openings now based in the United States. This move reflects Ripple's confidence in a more supportive regulatory landscape and underscores its commitment to expanding domestically. Ripple's acquisitions of Metaco and Standard Custody have further strengthened its infrastructure for tokenized assets and banking services, positioning the company as a leader in asset tokenization and interoperability.

 

Read more: What Is RLUSD? A Comprehensive Guide to Ripple's Stablecoin and Its Impact on XRP

 

4. XRP-Based Memecoin Surge and Ripple Network Growth

Source: CoinGecko 

 

The rapid growth of Ripple's memecoin ecosystem is adding to XRP's bullish trajectory. Recent data from CoinGecko shows Ripple memecoins, such as XRP Army, PHNIX, Pongo, Britto, and Vagabond, have seen significant valuations, with XRP Army soaring by 140% in the last week. This surge has contributed to an increase in total value locked (TVL) on the XRP Ledger, now at $68 million.

 

The vibrant meme coin activity not only boosts XRP's visibility but also enhances the overall utility and adoption of the XRP Ledger, creating additional demand for XRP tokens.

 

Conclusion

XRP's recent performance is a testament to the resilience and strategic positioning of Ripple in a dynamic market. The convergence of large-scale whale accumulation, institutional interest in ETFs, the approaching SEC lawsuit deadline, and a favorable regulatory outlook under the incoming Trump administration creates a powerful bullish narrative for XRP.

 

As Ripple continues to innovate and expand its ecosystem, XRP is poised to capitalize on these developments, potentially achieving new all-time highs and solidifying its position as a leading cryptocurrency. Investors and market participants should keep a close watch on these unfolding trends, especially the SEC's decision on January 15, 2025, as XRP's trajectory in 2025 looks promising and full of potential.

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