Over the past nine days, XRP has experienced a significant rally, climbing from $0.4957 on November 4 to a peak of $0.7407 today on Binance—a surge of over 50% at one point. Approximately 30% of this ascent occurred within the last 48 hours. However, following this rapid rise, XRP saw a sharp correction, retreating by -12% to $0.65 as of press time. These are the key reasons for the rally:
#1 XRP Funding Rates and Social Dominance Spike
One of the primary drivers behind the XRP price surge appears to be heightened social media activity and shifts in funding rates. On-chain analytics firm Santiment noted via X that the XRP community “has erupted with excitement and discussions related to crypto’s #7 market cap,” with over 4% of all coin discussions currently related to XRP following its 45% breakout over an eight-day span.
The firm emphasized that surpassing $0.74, XRP’s year-high back in March, will largely depend on “FOMO staying at bay, and funding rates on large exchanges like Binance not getting too weighed down by longs.”
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Santiment’s analysis highlighted that the ratio of Binance XRP long versus short positions has reached its highest point since March 31, indicating strong bullish sentiment among traders.
They also observed that previous spikes in social dominance, such as those at the beginning of August, served as perfect top signals, suggesting that the current surge in social discussions could precede a market correction. Conversely, Santiment also pointed out that the previous social spike marked a bottom signal.
#2 Gensler Resignation This Week?
Speculation about potential regulatory changes is also influencing XRP’s market dynamics under the Trump administration. Pro-crypto lawyer James “MetaLawMan” Murphy shared an intriguing timeline via X, drawing parallels between US presidential elections and the resignations of SEC chairs.
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He noted that after the 2016 and 2020 elections, SEC chairs Mary Jo White and Jay Clayton announced their resignations shortly after the results. Murphy suggested that with the 2024 election, there could be expectations for current SEC Chair Gary Gensler to resign, posting, “Hey Gary Gensler, we’re waiting.”
Time to say Goodbye Gary!
Nov. 8, 2016: Trump elected
Nov. 14, 2016: Mary Jo White…
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