XRP News Today: SEC Shake-Up and ETF Hopes Propel XRP Toward $3.55

Key Points

• XRP Price Surge: XRP rallied 7.55% on December 7, continuing Friday’s 8.05% breakout, closing at $2.6119.
• Pro-Crypto SEC Appointments: President-elect Trump’s nominations signal regulatory changes that could benefit Ripple and XRP.
• XRP-Spot ETFs on the Horizon: A Republican-led SEC may withdraw the Ripple appeal, paving the way for ETF approvals.
• Senate Banking Vote: The upcoming vote on SEC Commissioner Crenshaw’s renomination could influence XRP’s regulatory outlook.

The cryptocurrency market has witnessed significant developments this week, with XRP leading the charge. XRP surged by 7.55% on December 7, continuing its strong performance following an 8.05% rally the previous day. Closing at $2.6119, XRP outperformed the broader market, which saw a modest 0.54% rise in total market capitalization, now at $3.59 trillion.

XRP Climbs Higher Amid Political and Regulatory Shifts

XRP has been making headlines with a strong price rally, outperforming the crypto market this week. The surge is tied to political and regulatory factors, including President-elect Trump’s pro-crypto appointments and the looming prospect of XRP-spot ETFs. As optimism grows, XRP investors eye the critical $3.55 milestone from 2018, but risks tied to SEC decisions remain.

Key Drivers Behind XRP’s Rally

Pro-Crypto Appointments in the SEC and U.S. Administration

President-elect Donald Trump has reinforced his pro-crypto agenda by appointing Scott Bissent as Treasury Secretary, David Sacks as Crypto Czar, and Paul Atkins as the incoming SEC Chair. These developments signal a shift toward crypto-friendly policies and regulatory clarity, sparking hope for Ripple and the broader crypto ecosystem.

SEC Chair Gary Gensler’s departure on January 20, 2025, coupled with Commissioner Jaime Lizarraga’s resignation, could leave the SEC under Republican control. A Republican-led SEC is expected to focus on fostering innovation rather than enforcement-heavy measures, which could bode well for Ripple’s ongoing legal challenges.

Spot ETFs and XRP’s Growing Market Potential

A Republican-controlled SEC may also pave the way for the approval of XRP-spot ETFs. Following Judge Analisa Torres’s 2023 ruling that programmatic sales of XRP do not meet the Howey Test criteria, the SEC has little grounds to reject ETF applications centered on XRP.

Major players such as Grayscale, WisdomTree, and Bitwise have already submitted applications for XRP-spot ETFs. Approval could significantly boost XRP’s demand by opening the market to institutional investors. Notably, the SEC’s rejection of Solana-spot ETF filings but silence on XRP further indicates a possible regulatory green light for XRP-focused ETFs under the new administration.

Ripple Case Resolution and Regulatory Uncertainty

Ripple’s legal battle with the SEC continues to shape XRP’s price action. The SEC is required to file its appeal brief by January 15, 2025. If the incoming leadership withdraws the appeal, the programmatic sales ruling would stand as a critical precedent, cementing XRP’s status as a non-security and opening doors for broader adoption.

Pro-crypto lawyer Bill Morgan remains cautious, noting that the SEC’s brief filing is a critical milestone that could influence XRP’s near-term trajectory. Meanwhile, Bloomberg analysts highlight the transformative impact a favorable ETF decision could have on XRP’s price and market perception.

Key Events to Watch

• Senate Banking Committee Vote:
  On December 11, the Senate will decide on the renomination of SEC Commissioner Caroline Crenshaw. As a pro-Gensler figure, Crenshaw’s position could either uphold or hinder the pro-crypto shift within the SEC.
• Ripple Appeal Deadline:
  The SEC has until January 15, 2025, to file its brief appealing the Ripple case. A withdrawal of this appeal would solidify XRP’s standing and likely trigger a bullish response in the market.

XRP Price Outlook: Bullish Momentum or Risk of Correction?

XRP’s price trends remain tied to regulatory developments, especially the SEC’s decision regarding its Ripple case appeal.

Bullish Scenarios

• Breakout Above $2.90: XRP is positioned above both the 50-day and 200-day EMAs, signaling a strong bullish trend. A breakout beyond the $2.90 resistance could pave the way toward the psychological $3 level and further to its 2018 high of $3.55.
• ETF Approval: Approval of XRP-spot ETFs would introduce significant liquidity and investor interest, pushing prices to new heights.

Bearish Risks

• Rejection of ETF Applications: If the SEC continues its enforcement-led approach, it could derail the bullish sentiment around XRP.
• Appeal Pursuit: A formal SEC appeal against the Ripple ruling could undermine market confidence, leading to price drops below $2.50 and potentially toward $2.00.

Technical Analysis: XRP’s Key Levels

• Resistance Levels: $2.90 and $3.00
• Support Levels: $2.50 and $2.00
• Indicators:
  • 14-Day RSI: XRP’s RSI at 76.09 indicates overbought conditions, suggesting a potential pullback if selling pressure intensifies.
  • EMA Levels: The upward trend above the 50-day and 200-day EMAs supports the bullish outlook, though maintaining these levels is crucial for sustained growth.

Conclusion: What Lies Ahead for XRP?

XRP’s performance over the next few weeks will hinge on the SEC’s actions regarding the Ripple case and ETF applications. With a new pro-crypto administration taking shape, the outlook for XRP appears optimistic, but traders must remain cautious about potential regulatory hurdles.

Investors eyeing XRP should monitor key events, such as the Senate vote on SEC Commissioner Crenshaw and the January 15 deadline for the Ripple appeal. While the path to $3.55 is within reach, maintaining momentum will require a favorable regulatory environment and market sentiment.

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