The XRP rally continues to show strength after breaking $3 for the first time in three years.
Ripple (XRP) rose more than 16% from a 24-hour low of $2.73 to an intraday high of $3.17 on January 16, boosting its market cap to $178 billion and cementing its position as the third largest cryptocurrency after Bitcoin ( BTC) and Ethereum were strengthened. (ETH).
At the time of writing, XRP was up 8.4%, supported by a surge in trading activity. The token’s 24-hour trading volume reached $23.8 billion, an increase of 79.40% compared to the previous day.
Why is XRP going up?
The recent rally of will entail in the securities sector. Exchange committee.
The SEC’s lawsuit against Ripple, initiated in December 2020, accused the company of making unregistered securities offerings through XRP sales. Under current SEC Chairman Gary Gensler, the case has seen protracted litigation.
Gensler is expected to step down as SEC chairman on January 20, while pro-crypto attorney Paul Atkins, a Trump nominee, will take over. This leadership shift has fueled speculation that the SEC would drop its appeal in the Ripple lawsuit, potentially paving the way for a favorable settlement and lifting the regulatory cloud that has long loomed over XRP and also increasing the likelihood that a spot is approved.
Furthermore, Ripple CEO Brad Garlinghouse has previously noted that Trump’s election victory is already having a positive impact on Ripple, with the company closing more deals in the last six weeks of 2024 than in the previous six months. See below.
In addition to the hope for regulatory clarity, the growth of the broader Ripple ecosystem has also played a crucial role in strengthening positive investor sentiment around the altcoin, while also increasing the usefulness of the network.
Notably, Ripple’s dollar-pegged stablecoin RLUSD, which launched in mid-December 2024, has already surpassed several of its competitors, such as PayPal’s PYUSD and Justin Sun’s USDD, Frax.
About a month after its launch, the stablecoin has amassed a market cap of over $72 million and a 24-hour trading volume of $141 million at the time of writing. By comparison, PYUSD, launched in 2023, had a 24-hour trading volume of $24 million.
Meanwhile, the popularity of Ripple meme coins such as Other memes, such as PHNIX and LIHUA, also saw double-digit gains.
Whales have also contributed to XRP’s upward momentum. According to data from analytics platform Santiment, wallets holding between 1 million and 10 million XRP tokens have accumulated more than $3.8 billion worth of XRP since November 12, as noted in a January 15 report. after on X.
XRP could rise to $10: analysts
With the aforementioned factors and Bitcoin’s resurgence above $100,000 following cooler than expected US CPI data, market analysts expect XRP’s rally to continue in the coming days and surpass the previous all-time high, with many seeing a potential climb to a new all-time high to predict. high time of $10.
According to analyst Ali Martinez, XRP was currently in the midst of a “massive bullish breakout.” In a recent one X messageHe explained that the recent accumulation of whales and retail buying have caused the altcoin to break out of the bull pennant, positioning the token at a price that could push it towards $10.
Also the well-followed XRP community member ‘XRP Whale’ be towards a similar goal.
At the time of writing, XRP was about 9% below its all-time high of $3.40 reached in January 2018.
