XRP could extend rally to $0.6640 following Trump's victory

• XRP could enter bull season as the SEC may not file an appeal brief against Ripple due to Trump's victory.
• SEC could approve XRP ETF with President-elect Trump potentially firing Gensler.
• XRP could rally to $0.6640 if it breaks above the upper boundary of a key trading channel.

Ripple's XRP is up over 5% on Wednesday and could extend its rally to $0.6640 as the Securities & Exchange Commission (SEC) may not file its appeal brief against the company due to Donald Trump's presidential election victory.

XRP bull season imminent after Trump's victory

XRP is more likely to continue its recent positive run after rising 5% in the past 24 hours following Donald Trump's victory in the US presidential elections.

The token, which has suffered several setbacks since the SEC sued its founding company, Ripple Labs, in December 2020, could be set for a major bull season in the coming months following the election results.

Ripple's CEO Brad Garlinghouse quickly congratulated Trump on the victory and suggested he fire SEC Chair Gary Gensler on his first day in office.

During his campaign, Trump said he would fire Gensler and stop the agency's fierce regulatory actions against the crypto industry.

The SEC administration under Gensler was responsible for overseeing the agency's four-year battle against Ripple. Judge Analisa Torres concluded the case by dismissing claims that Ripple's sale of XRP to retail investors were unregistered securities and ordering Ripple Labs to pay a $125 million fine — miles away from the $2 billion the SEC requested.

However, the SEC filed a notice of appeal against parts of Judge Torres's ruling. Ripple countered by filing a cross-appeal challenging whether XRP transfers fall under the criteria for a Howey Test.

In a document posted by defense lawyer James K Filan, the court approved the SEC's request for appeal, but the agency must file its brief on or before January 15, or the case will be dismissed.

With Gensler potentially being demoted by Trump when he assumes office, it's unlikely the regulator will file the brief. Hence, effectively ending its case against Ripple Labs.

Meanwhile, several crypto community members are suggesting that the SEC will approve an XRP ETF in the coming months, with Gensler potentially gone and its court cases ending. Asset managers, including Bitwise, Canary Capital and 21Shares, had earlier filed for an XRP ETF after Judge Torres's ruling.

Meanwhile, Senator Elizabeth Warren defeated pro-crypto lawyer John Deaton, who was instrumental in defending XRP in its case against the SEC, to retain her seat in the Senate.

Ripple Technical Analysis: XRP could rally to $0.6640 if it breaks above key channel

XRP is trading near the $0.5400 psychological level, up 5% on the day, following $3.07 million in liquidations in the past 24 hours, per Coinglass data. Long and short liquidations accounted for $835,000 and $2.23 million, respectively.

The remittance-based token is moving within a key channel with an upper boundary extending from July 31 and a lower boundary from August 11.

If XRP fails to see a rejection near the $0.5608 resistance level where the 50-day, 100-day and 200-day Simple Moving Averages (SMAs) meet, it could tackle the upper boundary of the key channel near $0.5780.

XRP/USDT daily chart

A successful move above this upper boundary could see XRP rallying toward $0.6640.

The Relative Strength Index (RSI) is above its neutral level, indicating rising bullish momentum. The Awesome Oscillator (AO) is below its neutral level but could move above it soon. Crossing above the neutral level would strengthen the bullish pressure.

A daily candlestick close below $0.4860 will invalidate the bullish thesis.