XRP has been making headlines recently with a massive price surge, rising 20% over the past two days and an impressive 47% in the last five days. The sudden upward movement has surge interest across the crypto community, with investors eager to understand the catalysts behind this rally. Let’s delve into the four primary factors driving the recent spike in XRP’s price.

1. Speculation Over SEC Chairman Gary Gensler’s Resignation

A significant driver of XRP’s recent price action is the growing speculation about the potential resignation of Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC). On November 14, Gensler delivered a speech at the Practicing Law Institute’s annual securities regulation conference, where his comments were interpreted by some in the crypto community as a possible farewell. He remarked, “It’s been a great honor to serve with them, doing the people’s work, and ensuring that our capital markets remain the best in the world.”

This speculation gained momentum after the recent U.S. presidential election, where Donald Trump emerged victorious. Trump’s campaign had signaled a strong pro-crypto stance, with the former President promising to remove Gensler from his position. “I will fire Gary Gensler on day one,” Trump declared at the Bitcoin 2024 conference, hinting at a possible shift in regulatory oversight.

The potential departure of Gensler is seen as a positive development for XRP investors, given his role in the SEC’s lawsuit against Ripple Labs, the company behind XRP. The lawsuit, which has been ongoing for nearly four years, has significantly impacted XRP’s market performance. Investors are hopeful that a new SEC leadership under Trump could bring a more favorable regulatory environment, potentially even leading to the withdrawal of the SEC’s appeal against Ripple Labs.

2. Regulatory Tailwinds Under the Incoming Trump Administration

The expected policy changes under the Trump administration are another major factor fueling the XRP price rally. The incoming administration is anticipated to adopt a more crypto-friendly stance, appointing pro-crypto figures to key regulatory positions. This potential shift in the regulatory landscape is providing a boost to investor sentiment, particularly for assets like XRP, which have been embroiled in legal battles with the SEC.

Brad Garlinghouse, CEO of Ripple Labs, expressed his optimism on social media platform X (formerly Twitter). He highlighted the proactive engagement between the incoming Trump administration and the crypto industry, calling it a “breath of fresh air.” Garlinghouse also acknowledged the patience of the XRP community, noting the challenging journey since the SEC first began its scrutiny of Ripple Labs. He emphasized that the tides are turning, suggesting that the regulatory headwinds that have hindered XRP’s growth could soon shift to tailwinds, propelling the asset forward.

3. Increased Whale Activity

The surge in XRP’s price has also been accompanied by notable activity from large investors, often referred to as whales. On-chain analysis by Santiment revealed a significant increase in whale holdings. Wallets containing at least 1 million XRP have accumulated a total of 45.61 billion tokens, marking the highest amount held since June 2018.

This accumulation trend has been building over the past two years, with whales and sharks adding 3.44 billion XRP to their holdings, reflecting an 8.16% increase. This buying activity by large investors is a strong indicator of confidence in the asset’s long-term potential. It also suggests that major players are positioning themselves for a potential rally, contributing to the recent surge in XRP’s price.

Whale accumulation often signals bullish sentiment in the market, as these investors typically have better access to information and resources. Their actions can serve as a leading indicator of broader market trends, and in the case of XRP, the significant increase in whale holdings suggests that big players are betting on the asset’s future appreciation.

4. Technical Breakout

Beyond the fundamental drivers, technical analysis also points to a strong case for XRP’s recent price action. XRP has broken out of a six-year-long symmetrical triangle pattern, a significant technical formation that has been in the making since 2018. This pattern is typically seen as a consolidation phase, where prices fluctuate within a narrowing range before a breakout occurs.

In XRP’s case, the breakout above this pattern signals a potential end to the prolonged downtrend that saw the asset’s price decline by as much as 97% during the formation of the triangle. Historically, breakouts from such long-term patterns often precede substantial price increases, as they indicate a shift in market sentiment from bearish to bullish.

The technical breakout has been reinforced by strong trading volumes, suggesting robust investor interest and support at higher price levels. If XRP can maintain its momentum and hold above key resistance levels, the breakout could pave the way for sustained upward movement in the coming weeks.

What’s Next for XRP?

As XRP continues its upward trajectory, investors are closely monitoring several factors that could influence its price in the near term. The potential regulatory changes under the Trump administration are a significant wildcard, with the possibility of a new, more favorable SEC leadership bringing much-needed clarity to the crypto market.

Additionally, continued whale accumulation and positive technical indicators suggest that the bullish trend could extend, provided market conditions remain favorable. However, given the volatile nature of the crypto market, traders should remain cautious and consider potential pullbacks, especially as prices approach significant psychological levels like $1.

For now, the combination of regulatory optimism, increased whale activity, and a decisive technical breakout has created a perfect storm, driving XRP’s price higher. Whether this momentum can be sustained will depend on how these factors play out in the coming weeks.