#1 Speculation About SEC Chairman Gary Gensler’s Resignation

A primary driver behind XRP’s recent price movement is the growing speculation regarding the possible resignation of Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC). On November 14, Gensler delivered a speech at the Practicing Law Institute’s 56th annual conference on securities regulation, where he lauded the efforts of the SEC. “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,�Gensler stated.

The crypto community on Xinterprets this speech as a potential farewell address, especially in light of the upcoming transition following Donald Trump’s victory in the US presidential election. Investors anticipate that the Trump administration will appoint a pro-crypto chairman to lead the SEC. “I will fire Gary Gensler on day one,�Trump pledged during the Bitcoin 2024 conference.

Brad Garlinghouse, CEO of Ripple Labs, echoed these sentiments on X: “Joined Cantor’s annual Crypto Conference today – safe to say that the US is ready to be the crypto capital of the world with the next Trump Administration. Also an apt shirt to wear..on perhaps what are Gary Gensler’s last days in office?!â€?After Gensler’s resignation, there’s speculation that the SEC might reconsider its appeal against Ripple Labs, potentially alleviating regulatory pressures that have weighed heavily on the XRP price over the last years.

#2 Regulatory Tailwinds For XRP Under Trump

The anticipated policy shift under the incoming Trump administration is another critical factor contributing to the XRP price appreciation. The administration is reportedly preparing to adopt a more permissive stance toward crypto, with plans to appoint industry-friendly candidates to key regulatory positions.

“Chatted with Tony Romm about how the incoming Trump Administration is already engaging proactively with the crypto industry on clear rules of the road�what a breath of fresh air!�Garlinghouse remarked today on X.

Further emphasizing the potential positive impact, Garlinghouse stated via X: “I’ve shared some thoughts on what the Trump administration could mean for crypto and wanted to also recognize the XRP family’s patience and unwavering support. A lot has happened since XRP was the 2nd most valuable digital asset. It’s been – at times – a frustrating journey. ~6 years since the SEC started meddling in the crypto market, picking winners and losersâ€?~4 years since the SEC sued Ripple.

He added, “Now FINALLY we see a light at the end of the tunnel as these external (frankly unnatural and manipulative) market factors fade. The tides are shifting, headwinds are turning to tailwinds, and the opportunity for those of us who believe in the future for XRP is enormous!â€?/p> #3 Increased XRP Whale Activity

Whale activity, indicative of large-scale investments by major holders, has also played a significant role in the XRP price surge. On-chain analysis firm Santiment reports on X: “Wallets with at least 1M XRP now hold a combined 45.61B tokens, their highest amount held since June 2018. In the past 2 years, whales & sharks have reversed course and accumulated 3.44B more XRP, a +8.16% increase. Traders have enjoyed a +40% return in the past 7 days.�/p> #4 Technical Breakout

Complementing the fundamental drivers are technical factors contributing to the XRP price action. XRP has broken above a six-year-long symmetrical triangle pattern, a significant technical indicator that suggests the potential for sustained upward momentum. Historically, such breakouts have preceded notable price increases, and in XRP’s case, the price had previously declined by as much as 97% during the formation of this pattern.

At press time, XRP traded at $0.85.

#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.â€?/p>

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.

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 (SEC Chair) announces her resignation

Nov. 3, 2020: Biden elected Nov. 16, 2020: Jay Clayton announces resignation

Nov. 5, 2024: Trump elected Nov. __, 2024: Hey @GaryGensler, we’re waiting

�MetaLawMan (@MetaLawMan) November 12, 2024

This speculation is particularly significant for the XRP community because of the ongoing legal battle between Ripple and the SEC. President-elect Donald Trump has explicitly stated his intention to remove Gensler from his position on his first day in office, citing the need for a more crypto-friendly SEC chairman—a statement he made at the Bitcoin 2024 conference.

Ripple CEO Brad Garlinghouse has shown strong support for this potential change, urging Trump to appoint replacements more favorable to the crypto industry, such as Chris Giancarlo, Brian Brooks, or Dan Gallagher. Garlinghouse highlighted the need for regulatory clarity, especially concerning digital assets like Ethereum and XRP.

The speculation among some Ripple supporters is that Gensler’s removal could lead to a more favorable outcome for Ripple, potentially through the SEC dropping its appeal in the case. The market seems to be reacting to this speculation, with investors possibly trying to front-run the news in anticipation of a settlement or regulatory shift.

At press time, XRP traded at $0.65.