XRP gained 42% in the past week, after rallying almost 1% on Friday. The altcoin hit a new all-time high, with the 24-hour trading volume leaving Ethereum (ETH) to bite the dust on Thursday. The token could extend its streak in the coming days after the inauguration of President-elect Donald Trump.
XRP rally could extend next to Bitcoin
XRP has increased to 40% in the past week. Bitcoin (BTC), the cryptocurrency that has recovered the most since the crash below $90,000 and rebounded above $104,000 on Friday. The native token of the XRPLedger accumulates together with the main crypto.
Trump's upcoming inauguration is one of the main triggers, along with optimism about crypto regulation, pro-crypto policy and a new approach by financial regulatory agencies in the US
XRP could gain further, going into price discovery next week.
XRP is trading at $3.26 at the time of publication.
On-chain tokens support benefits
XRP on-chain indicators support a bullish thesis for the altcoin. The total funding rate metric is positive, more than one throughout January 2025. The number of active addresses recorded a large spike on Thursday, January 16.
The on-chain signals on Santiment are conducive to further gains in XRP in the coming week.
The supply distribution metric on Santiment shows an increase in the supply of the XRP token held by wallets that own 10,000 to 100,000, 1 million to 10 million and 100 million and above. XRP symptoms. The three classes of holders have collected the altcoin, even as the price climbs. This is an indication of a likely future XRP price increase.
Market movers and the Ripple lawsuit
Monday's setup is the biggest market move in crypto. But the increase in the adoption of RippleNet among institutions, the developments in RLUSD stablecoin and the SEC's lawsuit against Ripple are the three main market trends that affect the altcoin price.
Even as the US financial regulator appealed against Ripple on January 15, the altcoin continued its rally without stopping. July 2023 management by Judge Analisa Torres that characterized secondary sales of XRP as non-securities and the SEC is seeking to have these sales classified as non-registered securities sales.
Ryan Lee, lead analyst at Bitget Research, told crypto.news in an exclusive interview:
“XRP's rise can be attributed to favorable outcomes in Ripple's SEC lawsuit and a more crypto-friendly political climate in the US. If the regulatory uncertainty is resolved, the influx of institutional investors could strengthen XRP's position in the crypto market.”
It remains to be seen whether the Trump administration will support pro-crypto regulation and whether it will affect the outcome of lawsuits against companies such as Ripple Labs.
Technical analysis and XRP price forecast
The highest value of the XRP share was 3.40 US dollars. At the time of writing, XRP was trading at $3.2385. A 22% price rally could push XRP into price retracement, at the 141.4% Fibonacci retracement level from the $1.9054 low to the $3.4000 peak.
The technical indicators, RSI and MACD support a bullish thesis for XRP. MACD flashes continuous green histogram bars. Traders need to keep their eyes peeled as RSI indicates that the token is currently overbought or overvalued, as it reads 83.
If a correction is made, XRP could find support at the 50% Fibonacci level at $2.6977.
James Toledano, COO of Unity Wallet, told crypto.news in an exclusive interview:
“Since XRP has been stuck at around $0.50 for literally 3 years, the recent initial move shows new levels of investor optimism regarding regulatory clarity and the potential approval for the XRP ETF in the following months. If the XRP ETF is approved, it will have the potential to open the floodgates of capital inflows, meaning it could reach new heights in 2025.”
Toledano warns XRP holders to be cautious as altcoins bring volatility to the next level in the current market cycle.
He said:
“Altcoin ETFs have real potential to attract capital, especially if they are supported by innovation-friendly policies by the new administration coming into the US.” However, their success may not be as consistent compared to Bitcoin ETFs due to the seemingly random nature of interest in altcoins.
Just look at the fluctuations in the price of Bitcoin this week. The factors are multifaceted; We could say that it is Trump, seasonality, geopolitics, macroeconomics and sentiment all mixed together. To play devil's advocate, we as humans look for patterns but sometimes there are hidden drivers and cause and effects are not always connected. “
Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.
