XRP Rises 14%, Approaches $1.70 as Regulatory Shifts and Increased Demand Propel Price Surge
XRP has gained 14% in the last 24 hours, outperforming Bitcoin and other major cryptocurrencies, continuing a strong rally that has seen its price triple over the past month. This surge has brought XRP close to the $1.70 mark, a level not reached since April 2021, with many analysts now predicting a potential move toward the $2 threshold.
The latest surge in XRP’s price is fueled by a combination of favorable market conditions and regulatory optimism. Over the past month, XRP has seen a 200% increase in its value, becoming one of the top performers among major cryptocurrencies. Trading volume has increased by 30%, reaching $10 billion, with South Korean exchange UpBit leading the way in volume.
Although the precise catalyst for the jump on Friday is unclear, several contributing factors have been driving XRP’s impressive performance. The rally began in early November after Republican victories in the U.S. elections, which boosted confidence in tokens associated with U.S.-based companies, including Ripple Labs, the company behind XRP.
Mid-November saw another boost when U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler’s planned departure in January was announced, which sparked hope for a more favorable regulatory environment for XRP and the broader cryptocurrency market.
XRP has also seen record-high open interest in its futures market, with more than 2 billion XRP tokens (worth over $2 billion) in open positions, indicating strong investor confidence and expectations of continued market volatility.
In addition to the regulatory news, the growing speculation about the approval of an XRP exchange-traded fund (ETF) in the U.S. has further fueled XRP’s price rise. The launch of a new money-market fund on the XRP Ledger, which utilizes XRP for transaction fees, has also heightened anticipation of institutional adoption.
Ripple’s announcement of its plans to invest in the rebranded Bitwise Physical XRP ETP (formerly the ETC Group Physical XRP) helped push the price up by 10%. This move underscores Ripple’s commitment to supporting XRP’s market growth and its potential for further institutional use.
With favorable market trends, regulatory developments, and increasing institutional support, XRP appears poised to continue its ascent, with the $2 level now in sight.
