The price of XRP has reached levels not seen since April 2021, marking a resurgence for the token as bulls set their sights on the $2 milestone. In the past 24 hours alone, XRP has surged by 14%, outperforming major cryptocurrencies like Bitcoin and Dogecoin (DOGE). Over the past month, the token has rallied 200%, becoming one of the best-performing major tokens alongside DOGE.
Key Performance Metrics
- Current Price: Approaching $1.70
- 24-Hour Trading Volume: Up 30%, reaching $10 billion
- Leading Exchange: South Korea’s UpBit
Catalysts Behind XRP’s Rally
While Friday’s spike lacks a specific trigger, several recent developments have significantly bolstered XRP’s appeal:
- Republican Election Gains
XRP’s rise began in early November after Republican wins in U.S. elections boosted confidence in crypto assets linked to U.S. companies, including Ripple Labs, which is closely associated with XRP. - Regulatory Shifts
Mid-November saw another jump when Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC), announced plans to step down in January. This sparked hope for a more lenient regulatory environment, further energizing investor sentiment. - Record Futures Positions
Open interest in XRP futures has reached record highs, with over 2 billion tokens (valued at more than $2 billion) tied up in positions, indicating strong market anticipation of further volatility and price gains. - Institutional Adoption Prospects
Expectations are rising for a U.S.-based XRP exchange-traded fund (ETF), fueled by broader optimism about regulatory relaxation. Additionally, the launch of a money-market fund on the XRP Ledger has amplified hopes for institutional adoption of XRP for transaction fees and processing.
Ripple’s Strategic Moves
Ripple recently announced plans to invest in the newly rebranded Bitwise Physical XRP ETP (formerly the ETC Group Physical XRP). This move reflects the company’s strategy to expand institutional investment in XRP-backed financial products. The announcement on Wednesday sent XRP prices up by 10% in immediate response.
Market Outlook
With momentum building and regulatory sentiment shifting positively, XRP bulls are eyeing the $2 mark as the next major milestone. The market’s focus now shifts to whether this rally can sustain amid ongoing speculation about an ETF and broader institutional adoption.
