Ripple's XRP has made remarkable strides in the cryptocurrency market, surging to become the third-largest cryptocurrency by market capitalisation. This surge has been driven by a series of events, including the election of pro-crypto candidates and the potential for more favourable regulations. However, it's important to note that Ripple's price could face a potential pullback in the coming weeks.

Unraveling the Future of Ripple's Price

Market Capitalisation Surge

Ripple's XRP has achieved a significant milestone by surpassing notable tokens such as Solana, USDT, and Binance Coin. In just 24 hours on Monday, it skyrocketed by an impressive 40%, reaching $2.80. This surge has attracted over $120 billion in new investments, pushing its market cap to $156 billion. The election of Donald Trump and other pro-crypto candidates has played a crucial role in this rally. Crypto News reports that this is expected to lead to more favourable regulations for the crypto sector, particularly for Ripple Labs, which has been embroiled in a legal battle with the Securities and Exchange Commission since 2020.The rally has also revived hopes for a spot XRP exchange-traded fund (ETF) by 2025. Asset manager WisdomTree, which oversees $111 billion in assets, has applied for a spot Ripple ETF. This indicates the growing confidence in XRP and the potential for further growth.

Whale Activity and Exchange Premiums

According to CryptoQuant CEO Ki Young Ju, whale activity on Coinbase has been a major driver of the XRP rally. Over the past 30 days, Coinbase's minute-level price premium has ranged from 3% to 13% during the surge. This shows the significant influence of large investors on the XRP price.In contrast, South Korea's Upbit exchange, known for its significant XRP trading base, has shown no such premium during this period. This highlights the differences in market dynamics between different exchanges and the role of whale activity in driving prices.

Technical Indicators and Market Phases

Currently, XRP is trading well above its short- and long-term moving averages, suggesting the possibility of mean reversion. Technical indicators like the Relative Strength Index (RSI) and Stochastic Oscillator signal overbought conditions, indicating potential price weakness. XRP may also be in the markup phase of the Wyckoff Method, where demand exceeds supply. This phase is often followed by the distribution phase, typically resulting in a sell-off.If a pullback occurs, XRP could retreat to retest support at $1.9697, a critical level last reached in April 2021. This shows the importance of monitoring technical levels and understanding market trends to make informed investment decisions.In conclusion, while Ripple's XRP has shown remarkable growth and potential, it's important to be aware of the potential for a pullback. By closely monitoring market indicators and staying informed, investors can better navigate the volatile cryptocurrency market.