XRP Soars 16%: What’s Fueling This Crypto Comeback?

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XRP Soars 16%: What’s Fueling This Crypto Comeback?

The XRP market has been rising steadily. Recently, it reached $3 for the first time in three years. On January 16th, XRP jumped 16%, moving from a low of $2.73 to an intraday high of $3.17. Today, XRP is trading at 8.4% higher, with a market capitalization of $178 billion. It makes it the third biggest Blockchain asset after Bitcoin and Ethereum.

Trading volume has also influenced XRP’s value to rise. In the last 24 hours, trading volume was at $23.8 billion, which increased by 79.4% from the previous day. The upward move started on December 30 after Ripple climbed from the $2 support areas. Areas of influence such as ‘regulation alleviation’ and ‘ecosystem expansion’ are fueling this growth.

SEC Decision Looms: Ripple Investors Await Critical Outcome

Now, people are waiting for a decision from the United States Securities and Exchange Commission (SEC) for Ripple or XRP investors. It has been a legal brawl since December 2020. Ripple has been accused of providing securities that didn’t go through the correct regulatory approvals. Under Chair Gensler, the case extended longer than envisaged.

Since President-Elect Donald Trump is set to start on January 20, pressure for change has risen at the SEC. This is expected because Paul Atkins, a Trump nominee, is expected to become the new chair of the SEC. He is well regarded as an advocate of cryptocurrencies. The SEC could dismiss its appeal in the Ripple case and introduce the concept of a settlement.

Analysts also noted that achieving a settlement could also bring the chances of approval of a physical XRP ETF even closer, hence enhancing investors’ confidence. For that reason, Ripple CEO Brad Garlinghouse has already pointed out that Trump’s victory has a positive effect on the company, as many deals were closed during the last weeks of 2024.

Besides new regulations during the year, another strength for Ripple is the increase in its universe of clients and partners. Among the latest products, one of the successful launches is RLUSD, a stablecoin recently issued by Ripple. After launching in mid-December 2024, the RLUSD has a market capitalization of $72 million and a daily trading volume of $141 million, more than rivals PayPal’s PYUSD and Justin Sun’s USDD.

Ripple has also ventured into the meme coin market, boosting its growth and that of other coins. For instance, XRP ARMY and Britto have surged by 186% and 87% in just a week, thanks to Ripple’s ecosystem.

Traders and large investors, known as ‘whales,’ have played a key role in XRP’s rise. According to analytics platform Santiment, wallets holding between one million and ten million XRP tokens have accumulated about $3.8 billion since November 12, 2021.

Market analysts are optimistic about XRP’s future. Many believe it could reach a new record price. XRP is trading about 9% below its all-time high of $3.40, set in January last year.

Analyst Ali Martinez identified a major reason for XRP’s surge towards $10: the cracking of that bull pennant signal. Panic button for the Bulls! Like any other community commentator, ‘XRP Whale’ asserted that the accumulation by the whale and aggressive demand are key. Nevertheless, as with the rest of the cryptocCurr, XRP has benefited from Bitcoin by crossing the $100K mark and extending the recovery.

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