Ripple (XRP) saw a 5% increase on Monday, continuing its upward momentum following US President Donald Trump’s appointment of Mark Uyeda as the new acting Chair of the Securities and Exchange Commission (SEC). This announcement has spurred increased buying activity in the XRP spot market and related investment products.
Bullish Sentiment on XRP with New SEC Leadership
The crypto community is optimistic that the SEC may drop its appeal against Ripple after Gary Gensler resigned from his position as SEC Chair. Trump’s selection of Uyeda, who is known for his pro-crypto stance and his criticism of the SEC’s approach to the digital asset industry, has fueled anticipation that the regulatory landscape for crypto could become clearer and more favorable.
Investment Inflows and ETF Speculation
XRP investment products saw net inflows of $31 million, continuing their strong start to the year, according to CoinShares data. These inflows have contributed to a total of $484 million since mid-November, even without participation from US investors. Analysts from Standard Chartered believe that if XRP spot ETFs were approved by the SEC, they could attract between $4.3 billion and $8.4 billion in the first six to twelve months.
The XRP whale transactions also saw a significant uptick, indicating increased activity among large holders. Despite some brief declines in price, the overall sentiment remains positive, especially with XRP’s exchange reserves declining and net outflows increasing, suggesting that whales are largely buying.
Technical Outlook: XRP Could Rally to New Highs
On the technical side, XRP has formed a flag pattern on its 8-hour chart after rallying to break above its 2024 high of $2.90. If XRP can maintain support at the $2.90 level, the cryptocurrency could see a surge to $4.22, which would represent a new all-time high. This price target is derived from measuring the height of the flag pole and projecting it upward from the breakout point.
However, if XRP fails to hold the $2.90 support, it could see a decline toward the $2.60 level, near the 23.6% Fibonacci retracement, just below the 50-day Simple Moving Average (SMA). The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are currently above neutral levels, indicating strong bullish momentum. A daily close below $1.96 would invalidate this bullish outlook.
Conclusion
XRP’s price action is largely driven by positive market sentiment following the SEC leadership change and growing institutional interest. The potential for spot XRP ETFs and ongoing whale activity signals confidence in XRP’s future, setting the stage for a possible rally toward new all-time highs if the support levels hold.
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