On December 2, 2024, XRP experienced a dramatic rally, surging more than 41% against the US dollar to trade at $2.77 per coin as of 11:20 a.m. ET. This price move pushed the digital asset's market capitalization to approximately $154 billion, propelling it past Tether (USDT) and making it the third-largest cryptocurrency by market value, trailing only Bitcoin and Ethereum.
The rally was particularly volatile: XRP hit an intraday low of $1.89 earlier in the session before rocketing higher. Over the past year, XRP has gained an impressive 431%, far outperforming most major cryptocurrencies. Trading activity was equally explosive, with global 24-hour volume reaching a staggering $44 billion. While Tether remains XRP's primary trading pair, the Korean won (KRW) accounted for more than 26% of XRP swaps, highlighting strong Asian retail demand.
Derivatives Bloodbath: Short Sellers Lose $55M
The price surge triggered massive liquidations in the derivatives market. According to data, total crypto liquidations over the past 24 hours reached $588.66 million, with XRP positions accounting for $84 million of that total. Notably, short sellers bore the brunt of the losses, with $55 million in short positions liquidated compared to $29 million in long liquidations. This imbalance reflects the ferocity of the upward move and the pain inflicted on bearish traders.
XRP now sits just 19% below its all-time high of $3.40, set on January 7, 2018, nearly seven years ago. The rapid approach to that level has reignited speculation about a potential breakout and new record highs.
Regulatory Tailwinds in Focus
Much of the renewed enthusiasm appears tied to optimism around a potential shift in regulatory stance from the U.S. Securities and Exchange Commission (SEC). The SEC has been engaged in a prolonged legal battle with Ripple Labs, XRP's affiliated company, over whether XRP constitutes a security. Recent signals hinting at possible regulatory leniency have fueled hopes that XRP may enjoy greater clarity and institutional adoption going forward.
While the SEC has yet to announce formal policy changes, the market is clearly pricing in a more favorable outcome. The combination of technical momentum, massive liquidity from Korean and global exchanges, and regulatory optimism has created a perfect storm for XRP.
However, the high level of liquidations—especially the disproportionate short squeeze—serves as a reminder of the extreme volatility inherent in this market. Traders should be cautious as XRP tests resistance near $2.80–$3.00. A sustained close above $2.70 could open the door to a challenge of the all-time high, but a failure to hold gains might trigger sharp pullbacks.
Overall, XRP's performance on December 2 underscores the continued appeal of high-beta assets in the crypto space, with speculative fervor and fundamental catalysts combining to produce outsized moves.