XRP Soars 14%, Nears $1.70, Boosted by Regulatory Shifts and Market Momentum
XRP has surged by 14% in the past 24 hours, outpacing Bitcoin and other major cryptocurrencies. This marks the continuation of a month-long rally that has seen its price triple, making it one of the top-performing tokens alongside Dogecoin (DOGE). The token’s value has approached the $1.70 mark, levels not seen since April 2021, with traders now targeting $2 as a potential resistance level, signaling renewed optimism for the once-beleaguered cryptocurrency.
The recent surge comes on the back of several fundamental and regulatory developments that have reinvigorated investor confidence. In addition to the impressive 200% price increase over the past month, XRP’s 24-hour trading volume has risen by 30%, reaching $10 billion, with significant trading activity on South Korean exchange UpBit.
While there was no immediate catalyst for the price jump on Friday, a number of factors have contributed to XRP’s recent rally. The bullish momentum began in early November, following Republican victories in the U.S. elections, which renewed investor interest in tokens linked to U.S. companies like Ripple Labs, the company behind XRP.
XRP gained further traction in mid-November after the announcement that U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler would step down in January, raising hopes of a more favorable regulatory environment for cryptocurrencies, particularly for Ripple and XRP.
Open interest in XRP futures and U.S. dollar-denominated positions has reached record levels, with over 2 billion tokens (valued at more than $2 billion at current prices) tied to futures contracts betting on continued market volatility. This heightened interest points to growing institutional and retail engagement with the asset.
Moreover, the speculation around the potential approval of an XRP exchange-traded fund (ETF) in the U.S. has fueled optimism, particularly as regulatory changes are expected. The launch of a money-market fund on the XRP Ledger, the network that processes XRP transactions, has also increased expectations of broader institutional adoption.
In another positive development for XRP, Ripple announced plans to invest in the newly rebranded Bitwise Physical XRP ETP, formerly known as the ETC Group Physical XRP. This announcement triggered a 10% spike in XRP’s price at the time, adding to the bullish sentiment surrounding the token.
With growing market interest and regulatory shifts paving the way for more widespread use of XRP, the cryptocurrency is positioning itself for continued growth, with eyes now set on the $2 milestone.
