DailySun
In the last week, XRP surged by 42%, following a nearly 1% increase on Friday. The altcoin reached a new all-time high, with its 24-hour trading volume surpassing that of Ethereum (ETH) on Thursday. This momentum could continue in the upcoming days after the inauguration of President-elect Donald Trump.
XRP may continue its rally alongside Bitcoin
XRP experienced an impressive rally of over 40% in the past week. Bitcoin (BTC), the leading cryptocurrency, bounced back from a flash crash below $90,000 and regained its footing above $104,000 on Friday. The native token of the XRPLedger is gaining traction alongside the top crypto.
The anticipated inauguration of Trump is one of the main catalysts, along with optimism regarding crypto regulations, pro-crypto policies, and a renewed approach by financial regulatory bodies in the U.S.
XRP might further increase as it enters price discovery next week.
Currently, XRP is trading at $3.26.
On-chain indicators bolster gains
XRP’s on-chain metrics are indicative of a bullish outlook for the altcoin. The total funding rate has remained positive, exceeding one throughout January 2025. A significant spike in the number of active addresses was noted on Thursday, January 16.
According to Santiment’s on-chain indicators, XRP is poised for further gains in the week ahead.
The supply distribution data from Santiment indicates a growing share of XRP tokens held by wallets containing 10,000 to 100,000, 1 million to 10 million, and over 100 million XRP tokens. These three categories of holders have been accumulating the altcoin even as its price rises, suggesting a potential increase in XRP’s future value.
Market drivers and the Ripple lawsuit
The inauguration on Monday is poised to be the biggest market influence across the crypto sphere. However, the increasing adoption of RippleNet among institutions, progress with the RLUSD stablecoin, and the SEC’s lawsuit against Ripple are also significant factors impacting the altcoin’s price.
Despite the U.S. financial regulator filing an appeal against Ripple on January 15, XRP’s rally has persisted unabated. The July 2023 ruling by Judge Analisa Torres, which deemed secondary sales of XRP as non-securities, is being contested by the SEC, which is seeking to classify those retail sales as unregistered securities.
Ryan Lee, chief analyst at Bitget Research, shared his insights in an exclusive interview with crypto.news:
“The rise in XRP’s value is linked to favorable developments in Ripple’s SEC lawsuit and a more crypto-friendly political atmosphere in the U.S. If regulatory ambiguities are clarified, the influx of institutional investment could further strengthen XRP’s foothold in the crypto marketplace.”
The implications of Trump’s administration on pro-crypto regulations and the potential impacts on ongoing lawsuits involving companies like Ripple Labs remain to be seen.
XRP technical analysis and price prediction
XRP is trading close to its all-time high of $3.40. As of this writing, XRP was valued at $3.2385. A potential 22% price increase could position XRP for price discovery at the 141.4% Fibonacci retracement level from the $1.9054 low to the $3.4000 peak.
Technical indicators, including the RSI and MACD, support a bullish viewpoint for XRP. The MACD is displaying consecutive green histogram bars. Traders should remain vigilant as the RSI indicates the token may be overbought, currently reading 83.
Should there be a correction, XRP might find support at the 50% Fibonacci retracement level around $2.6977.
James Toledano, COO of Unity Wallet, provided his perspective in an exclusive interview with crypto.news:
“Having spent approximately three years around $0.50, XRP’s recent momentum reflects a resurgence of investor confidence in light of regulatory clarity and the potential approval of an XRP ETF in the near future. Should the XRP ETF receive approval, it could unleash significant capital inflow, propelling the price to new heights in 2025.”
Toledano cautions XRP holders to be mindful, as altcoins may experience heightened volatility in the current market scenario.
He stated:
“Altcoin ETFs hold genuine capacity to draw in capital, particularly if backed by innovation-friendly policies from the new U.S. administration. However, their performance may be inconsistent compared to Bitcoin ETFs, given the episodic interest in altcoins.
The recent fluctuations in Bitcoin’s price this week illustrate this complexity; multiple factors are at play—Trump, seasonality, geopolitics, macroeconomics, and sentiment all intertwine. It’s crucial to acknowledge that while we are pattern seekers, hidden drivers exist, and correlations aren’t always clear.”
Disclosure: This article does not constitute investment advice. The content and materials presented on this page are intended solely for educational purposes.
