How High Can XRP Price Realistically Go After Gensler’s Resignation?

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As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen more than a few market shifts and regulatory changes that have significantly impacted various assets. The impending resignation of Gary Gensler as the Chair of the SEC is undoubtedly one such event that has caught my attention, particularly in light of its potential implications for XRP.

The upcoming departure of Gary Gensler as Chair of the US Securities and Exchange Commission (SEC), which will take effect on January 20th – the same day President-elect Donald Trump is to be inaugurated – is anticipated to be a significant event for XRP enthusiasts. In his recent video, crypto analyst Rodney (@cryptojourneyrs) discussed the possible price trends in the post-Gensler period.

During his examination, the price of XRP was at approximately $1.43, signifying a significant 172% surge over the past four weeks. The market value skyrocketed to an impressive $81 billion, with a substantial $22 billion worth of transactions happening each day. Rodney commented, “XRP seems to be regaining its position in the cryptocurrency world, standing as one of the influential altcoins.

Why XRP Is Poised To Surge Higher

In Rodney’s video, he posits that Trump’s threat to dismiss Gary Gensler on inauguration day could have prompted Gensler’s early resignation. Rodney said, “Gary Gensler will be leaving his position as the SEC chair on January 20th, the same day Trump takes office.” He suggests that since Trump had vowed to terminate Gensler immediately, Gensler might have chosen to step down voluntarily to maintain his dignity.

In discussing the SEC’s legal action against Ripple, Rodney pointed out the substantial influence it had on XRP’s price and overall market sentiment. He commented that “when the SEC filed a lawsuit against Ripple, the value of XRP dropped approximately 50%. This lawsuit was just one example among many legal actions initiated by the SEC and Gary Gensler, targeting various cryptocurrency projects. It appeared as though they were attempting to exert control over the crypto market to the point of elimination.

As an analyst, I’d like to emphasize that despite the ongoing legal hurdles, Ripple’s XRP continues to hold its ground as one of the leading cryptocurrencies. In essence, it’s been quite remarkable how it’s managed to maintain its position in the top 10 for several years now, even amidst all the challenges and noise.

Rodney also discussed Ripple’s partial victory against the SEC in July 2023, which set a significant precedent in the crypto industry. However, he expressed surprise that the price did not react more positively at the time.
“When we heard about that news of them partially beating the SEC, XRP started to pump to around $0.67 but then promptly dipped down to about $0.50 and didn’t really do anything,” he observed. “It wasn’t moving with the cryptocurrency market at all… It was a running joke that it was kind of our favorite stablecoin.”

Speaking about the political arena, Rodney asserted: “In essence, Donald Trump effectively undermined Kamala Harris and is poised to become the next President of the United States,” he declared. He underlined Trump’s favorable position towards cryptocurrencies, pointing out that he was “significantly more inclined to endorse crypto” and was “the pioneer among presidents to buy something using cryptocurrency.

Rodney highlighted the involvement of various crypto projects in political campaigns, mentioning that “many cryptocurrency products were funding both candidates’ campaigns behind the scenes.”

In light of the recent political changes, Rodney appears hopeful that cryptocurrencies will become integrated within government frameworks. He confidently stated, “It seems like cryptocurrency is increasingly becoming part of our government’s operations, and in my view, XRP stands a good chance to be among the leading projects in this field.

He elaborated on XRP’s core objectives, stating, “What is XRP trying to do? They want to be used for international money transfers […] They want to enable fast and low-cost international money transfers and currency exchanges.” He suggested that with supportive figures in government, XRP could realize this potential.

How High Can XRP Price Go?

In my research, I explored potential price predictions for XRP under different market capitalization scenarios. If XRP were to match Ethereum‘s current market cap of approximately $400 billion, it would represent a 4.9x increase from its current value, potentially taking XRP to around $6.98. Hypothetically speaking, suppose XRP were to become an integral part of our government and widely utilized for its practical applications. In such a scenario, if it mirrored Ethereum’s market cap size, that could be the case.

If XRP were to match Bitcoin‘s current market capitalization of about $2 trillion, this would represent a 24-fold increase, positioning XRP at roughly $33. “Let’s entertain a more extravagant scenario […] Suppose we granted it the same market cap as Bitcoin, which is now approximately $2 trillion,” he pondered.

He believed it was plausible that the value of one XRP could reach $10, implying a market capitalization of approximately $600 billion for XRP.

Nevertheless, Rodney conceded the difficulties associated with such forecasts, pointing out that “it’s quite challenging for any cryptocurrency initiative to reach those market capitalizations given that Bitcoin currently holds a dominant position in the market.

At press time, XRP traded at $1.40.

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2024-11-26 13:35