HBAR up 235% post-election

Major Developments for the Week

• XRP passes $2 for the 1st time in 7 years, becomes 4th largest crypto
• Bitcoin flirts with $100K, Thanksgiving 2024 mimics Thanksgiving 2020
• HBAR skyrockets, up 235% since the election
• Altcoins shine, showing impressive gains across the board
• Ethereum ETFs outpace Bitcoin ETFs in recent rally
• Crypto Oversight Shake-Up: Trump eyes CFTC leadership role
• Hong Kong Crypto Push: Tax breaks to lure hedge funds
• Russia Approves Crypto Tax: New rules for mining and trading
• Taiwan Tightens Rules: AML measures fast-tracked for Nov. 30

XRP’s meteoric rise and momentum

XRP‘s 2024 rally has been unprecedented, with its price breaking past $2 for the first time in nearly seven years. Up 74% in the past week alone, XRP surged 281% in November, propelling it to the fourth-largest cryptocurrency, surpassing Solana with a market cap exceeding $122B.

Anticipation of a favourable outcome in Ripple’s ongoing legal saga with the SEC has also contributed to optimism, alongside growing confidence in a potential spot ETF approval. Ripple’s routine release of one billion XRP tokens worth $1.92 billion added potential volatility as the cryptocurrency hit seven-year highs.

Key XRP Milestone Timeline

Image created by Sam North, eToro analyst
Past performance is not an indication of future results

Legend
1. January 2018: XRP hits its all-time high at $3.84.
2. December 2018: XRP experiences a significant drop during the broader market downturn.
3. November 2020: The SEC sues Ripple, alleging XRP was sold as an unregistered security.
4. March 2021: XRP rallies on favorable court rulings in the SEC case.
5. July 2023: A pivotal ruling declares XRP not inherently a security, sparking a price surge.
6. August 2024: SEC’s appeal introduces uncertainty, but XRP maintains momentum.
7. November 2024: XRP climbs above $2 amid regulatory and market optimism.
8. December 2024: XRP reaches its highest price since 2018.

Market Sentiment and Technical Analysis

XRP’s rise has been supported by a bullish flag breakout, with analysts projecting further gains toward $4.28. However, overbought conditions and potential distribution phases signal caution, with open interest in XRP futures reaching record highs. While the momentum is strong, volatility remains a concern.

Strategic Partnerships Fuel Growth

Ripple’s collaboration with Archax and abrdn (formerly known as Standard Life Aberdeen) has introduced tokenized money market funds on the XRP Ledger, tapping into a projected $16 trillion market by 2030. Ripple’s other partnerships, such as with Mercy Corps Ventures, underscore its broader efforts to enhance financial inclusion. These developments have led to a doubling of active XRP accounts in November and a surge in newly activated accounts, reflecting growing adoption and investor interest.

Bitcoin: Steady Amid Market Momentum

Bitcoin‘s recent price action reflects a familiar pattern for long-time market observers. After nearly reaching the psychological $100,000 milestone, the cryptocurrency has entered a phase of consolidation, mirroring its performance during Thanksgiving 2020, as pointed out by eToro analyst Simon Peters. It was after this that the crypto king embarked on a powerful bull run that culminated in a record-breaking $69,000 peak in 2021. This cyclical behavior, tied closely to Bitcoin’s four-year halving cycle, has become a hallmark of its price dynamics.

Now, with its price stabilizing near record highs, the market is once again watching history potentially repeat itself. While some analysts see the current pause as a prelude to another explosive rally, others caution that Bitcoin’s role as a stabilizing force in the market is just as crucial—offering a contrast to the rapid movements seen in altcoins like XRP.

Trending Altcoins and Broader Market Insights

Thanksgiving saw altcoins like HBAR, NEAR, and SUI post impressive gains, with HBAR up 235% since the U.S. presidential election. XRP’s performance, driven by regulatory optimism and increasing adoption, highlights the altcoin market’s potential for outsized returns in comparison to Bitcoin’s steadier climb.

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This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.