The most bullish time is also the most dangerous! Analysts warn: 'This coin' has high leverage risk, be careful of pullback in the short term.

Ripple ($XRP) breaks through $2, reentering the top three in global Cryptocurrency Market Cap

After Donald Trump was elected as the new president of the United States, due to the emergence of many bullish and unconfirmed news, Ripple ($XRP) has experienced an amazing surge. As of today (12/2) when this article was written, not only has it exceeded $2, but its total market capitalization has also reached $140 billion, surpassing the well-known stablecoin Tether ($USDT) and regaining the third place in the global Cryptocurrency Market Cap rankings.

Ripple ($XRP) recently inventory of multiple Favourable Information

Cryptocurrency ranking website CoinGecko data shows that Ripple ($XRP) has surged 376% in just one month, with strong performance stemming from multiple bullish factors.

First of all, in terms of ETF applications, asset management company 21Shares has submitted an application for a Ripple ETF at the beginning of November this year. The market expects that the Securities and Exchange Commission (SEC) of the United States may approve these applications under the leadership of the new government.

In terms of legal litigation, Ripple, which has been in a legal battle with the SEC for many years, reached a turning point in 2023 when a judge ruled that XRP is not a security, clearing significant legal obstacles.

Former Chairman of the Commodity Futures Trading Commission (CFTC) Chris Giancarlo predicts that under the new Trump administration, the SEC may withdraw its lawsuit against Ripple.

Further reading: encryption沙皇黑馬人選是他！CFTC前主席：encryption貨幣將成川普優先事項

In addition, XRP is actively expanding its business and plans to launch a Stablecoin called $RLUSD. The New York Department of Financial Services (NYDFS) is expected to approve it before December 4th.

There are also several rumors in the market that are considered bullish news, such as the XRP CEO meeting with Trump, and rumors that Musk will invest heavily in XRP companies and XRP coins, but none of them have been confirmed.

Further reading: When did the American Block chain lead the world? XRP CEO: Just one more black swan!

Analyst: Ripple ($XRP) has leverage risk, be careful of short-term pullback

Although the future of Ripple ($XRP) seems bright, analysts remain cautious.

According to Cointelegraph, CoinGlass data shows that in the past 24 hours, the derivatives open interest of Ripple has surged 37%, reaching $4 billion.

Maarten Regterschot, an analyst at the blockchain data platform CryptoQuant, said that the similar drastic fluctuation in open interest of XRP has led to a pullback of up to 17%, and reminded investors to remain vigilant and pay attention to risk management.

Image source: Maarten Regterschot Ripple ($XRP) 24-hour price and open interest changes

As of the time of writing, the price of XRP is 2.4 US dollars, still about 95% below the historical high of 3.4 US dollars set in January 2018.

Due to Trump's election, SEC reorganization and other positive news, XRP has become one of the most eye-catching focal points of this bull market. However, the surge in open interest also reminds investors that the market's leverage risk is rising, and cautiousness must be maintained.

[Disclaimer] The market is risky, and investment should be cautious. This article does not constitute investment advice. Users should consider whether any opinions, perspectives, or conclusions in this article are applicable to their specific circumstances. Investing based on this is at your own risk.

The most powerful time is also the most dangerous! Analysts warn: 'This coin' has a high leverage risk, be careful of pullback in the short term. This article was first published in 'encryption city'