The recent XRP rally has shown impressive strength, with the cryptocurrency breaching $3 for the first time in three years. Ripple (XRP) surged over 16% from a 24-hour low of $2.73 to an intraday high of $3.17 on Jan. 16, solidifying its position as the third largest cryptocurrency with a market capitalization of $178 billion, following Bitcoin (BTC) and Ethereum (ETH).
Currently, XRP is up 8.4%, supported by a surge in trading activity that has seen its 24-hour trading volume reach $23.8 billion, marking a significant 79.40% increase compared to the previous day.
The primary driver behind XRP’s recent rally can be attributed to optimism surrounding the upcoming inauguration of President-Elect Donald Trump on Jan. 20. This event is expected to bring about changes at the Securities Exchange Commission (SEC), particularly with the potential shift in leadership from Gary Gensler to pro-crypto advocate Paul Atkins.
The SEC’s lawsuit against Ripple, which accused the company of conducting unregistered securities offerings through XRP sales, has seen prolonged litigation under Gensler’s tenure. With Atkins set to take over, there is speculation that the SEC may drop its appeal in the Ripple lawsuit, potentially leading to a favorable settlement and regulatory clarity for XRP. This could also increase the likelihood of a spot XRP ETF getting approved.
Additionally, Ripple CEO Brad Garlinghouse has noted that Trump’s election win has had a positive impact on Ripple, with the company signing more deals in the last six weeks of 2024 than in the previous six months. The broader Ripple ecosystem’s growth, including the launch of the dollar-pegged stablecoin RLUSD, has also played a significant role in boosting investor sentiment around XRP.
Analysts are optimistic about XRP’s future, with many projecting a potential rally to a new all-time high of $10. Factors such as whale accumulation, retail buying, and Bitcoin’s resurgence above $100,000 are expected to support XRP’s upward momentum. At the time of writing, XRP is approximately 9% below its all-time high of $3.40, reached in January 2018.