Ripple surges to a six-year high just below $2.50

Ripple (XRP) price extends its gains, trading above $2.40 at the time of writing on Monday after rallying more than 60% the previous week and surging almost four times in November. On-chain metrics support this bullish price action as XRP’s daily trading volume, active addresses, and open interest reach record levels.

Additionally, the resignation announcement of US Securities and Exchange Commission (SEC) Chair Gary Gensler on November 21 and the launch in Europe of an XRP exchange-traded product (ETP) by asset management company WisdomTree the same day further added bullish credence to the Ripple price.

XRP on-chain metrics look promising

Ripple price has experienced a significant rally, surging almost four times in November. XRP reached a new six-year high of $2.49 on Monday, breaking above its January 8, 2018 high of $2.45. According to CoinGecko, XRP is now the third-largest cryptocurrency by market capitalization, overtaking Tether (USDT). This impressive performance has sparked excitement among investors, with many speculating that XRP could continue to rise, potentially reaching $3 or even higher soon.

Looking down on its on-chain metrics provides a clearer bullish outlook. Santiment’s Daily Active Addresses index, which tracks network activity over time, rose from 45,409 on Saturday to 109,070 on Monday, the highest level since mid-August 2023. This indicates that demand for XRP’s blockchain usage is increasing, which bodes well for Ripple’s price.

XRP Daily Active Addresses chart. Source: Santiment

Ripple’s Open Interest (OI) also supports the bullish outlook. Coinglass’s data shows that the futures’ OI in XRP at exchanges rose from $2.27 billion on Saturday to $4.18 billion on Monday, almost doubling in two days. An increasing OI represents new or additional money entering the market and new buying, which suggests a rally ahead in the Ripple price.

XRP Open Interest chart. Source: Coinglass

Another aspect bolstering the platform’s bullish outlook is a recent surge in traders’ interest and liquidity in the XRP chain. Token terminal data shows that XRP’s daily trading volume reached the highest yearly volume of $25.75 billion on November 16 and has been constantly showing strength since then.

XRP trading volume since the beginning of the year. Source: Token Terminal

Other optimism for XRP bullish rally 

The victory of Donald Trump’s crypto-friendly candidate in the US election in early November supported Ripple’s bullish outlook. Additionally, the official announcement of SEC Chair Gary Gensler on November 21 that he would resign from the agency on January 20, 2025, added fuel to Ripple’s ongoing rally as investors anticipate an end to the SEC’s stringent “regulation by enforcement” approach, which has heavily impacted Ripple and the broader crypto sector.

Analysts consider that a new, more pro-crypto SEC chair could lead to a favorable outcome in the legal battle between the SEC and Ripple, unlocking XRP’s full potential and broader acceptance in the financial ecosystem. 

Moreover, the WisdomTree Physical XRP ETP launched in Europe in the same day added more credence to the bullish outlook. The launch allows investors to gain exposure to the native token on the XRP Ledger through regulated European markets. This is a positive sign for the token’s accessibility and liquidity, as seen in the above-mentioned on-chain metrics. This renewed interest attracted investors and traders to the XRP token and anticipated the equivalent XRP ETF products could be launched in the US.