XRP Rises 17%, Leading the Charge While the Market Rally Slows; Trader Holds Hope for $120K Bitcoin Target

XRP soared by 17% over the last 24 hours, outpacing Bitcoin (BTC) and other major cryptocurrencies as shifting regulatory dynamics in the U.S. fueled growth in tokens that had previously been hindered by the Securities and Exchange Commission’s (SEC) actions.

Trading above 82 cents early Friday in Asia, XRP extended its weekly gains to 50%, reaching levels not seen since June 2023. The price spike came as 18 U.S. states filed a lawsuit against the SEC, accusing the agency, including its chairman Gary Gensler, of overstepping its authority in regulating the crypto industry.

Speculation has risen that a future crypto-friendly Trump administration could benefit U.S.-based crypto companies like Ripple Labs (issuer of XRP) and Uniswap (UNI), with investors believing these firms are more focused on enhancing value for their token holders.

On the other hand, Bitcoin and other major tokens faced a dip of as much as 4%, following profit-taking after several days of market growth. The price drop was triggered by hawkish remarks from Federal Reserve Chairman Jerome Powell, who dampened hopes of a swift interest rate reduction. “The economy is not signaling that we need to rush to lower rates,” Powell remarked at a Dallas conference. As a result, the market’s expectation for a 25 basis point rate cut in December dropped from 83% to 66%.

Bitcoin fell from a peak of $93,000 to $88,000, triggering over $120 million in liquidations. Ethereum (ETH) and Solana (SOL) also saw declines of about 3.5%, while meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) saw losses of up to 5%.

Despite the pullback, broader market sentiment remains bullish. The CoinDesk 20 Index, which tracks the largest cryptocurrencies by market cap, stayed relatively flat. Meanwhile, Pepe (PEPE), a newly minted top-20 token, corrected 8% after experiencing a 75% surge the previous day following its listing on Coinbase, briefly pushing its market cap above $10 billion.

Traders at QCP Capital remain optimistic about Bitcoin’s future price action, projecting that the coin could reach $100,000 to $120,000 based on its strong performance post-U.S. elections. “The fundamental strength behind Bitcoin is tied to a broader market shift, and we believe this is driven by the anticipation of Trump’s return to office,” said QCP traders. “Trump’s proposal of a strategic BTC reserve and moving from gold to BTC adds a solid narrative that could help drive Bitcoin’s long-term growth.”