XRP Up 16% Today: What’s Behind the Gains?

XRP has been experiencing a significant rally, rising over 16% on January 16, from a 24-hour low of $2.73 to an intraday high of $3.17. This surge pushed XRP’s market capitalization to $178 billion, solidifying its position as the third-largest cryptocurrency, behind Bitcoin (BTC) and Ethereum (ETH). At the time of writing, XRP had increased by 8.4%, supported by a massive uptick in trading activity. Its 24-hour trading volume reached $23.8 billion, a substantial 79.4% increase compared to the previous day.

The rally that began on December 30, when XRP bottomed out around the $2 support level, has been primarily fueled by optimism surrounding the upcoming inauguration of President-Elect Donald Trump on January 20, 2025. This event is expected to bring some highly anticipated changes to the U.S. Securities and Exchange Commission (SEC), which has been involved in a legal battle with Ripple since December 2020. The SEC had filed a lawsuit accusing Ripple of conducting unregistered securities offerings through its sales of XRP. Under the leadership of the current SEC Chair, Gary Gensler, the case has dragged on for over three years, causing uncertainty for XRP and its investors.

Gensler is expected to step down as SEC Chair on January 20, with Paul Atkins, a pro-crypto advocate and a Trump nominee, set to take over. This leadership shift has sparked speculation that the SEC might drop its appeal in the Ripple lawsuit, potentially leading to a favorable settlement. Such a resolution would lift the regulatory cloud that has long hovered over XRP and might even increase the chances of a spot XRP ETF being approved. This optimism has contributed to a strong surge in XRP’s price, as investors speculate that a favorable legal outcome could unlock further growth for the token.

Ripple CEO Brad Garlinghouse has previously stated that Trump’s election victory has already 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. Beyond the anticipation of regulatory clarity, the broader growth of the Ripple ecosystem has also played a significant role in boosting investor sentiment surrounding XRP. Notably, Ripple’s dollar-pegged stablecoin, RLUSD, which launched in mid-December 2024, has already surpassed several of its competitors, including PayPal’s PYUSD and Justin Sun’s USDD. After just a month, RLUSD’s market capitalization exceeded $72 million, with a 24-hour trading volume of $141 million, significantly outpacing PYUSD, which had a 24-hour trading volume of just $24 million.

Moreover, the growing popularity of Ripple-related meme coins like XRP ARMY, which has risen over 186% in the past week, and Britto, which has gained over 87% in the same period, has further fueled XRP’s upward momentum. Other meme tokens like PHNIX and LIHUA have also seen double-digit gains, contributing to the overall positive sentiment surrounding Ripple’s ecosystem and boosting investor interest in XRP.

Whales, or large holders of XRP, have also played a crucial role in driving up the price. According to data from analytics platform Santiment, wallets holding between 1 million and 10 million XRP tokens have accumulated over $3.8 billion worth of XRP since November 12, 2024. This whale accumulation, coupled with retail buying, has been instrumental in propelling XRP to its current levels.

With the various factors outlined above and Bitcoin’s resurgence above the $100,000 mark following cooler-than-expected U.S. CPI data, market analysts predict that XRP’s rally is far from over. Many are forecasting that XRP could surpass its previous all-time high, with some projecting that it could climb to a new all-time high of $10. Analyst Ali Martinez recently explained that XRP is currently in the midst of a “massive bullish breakout,” and that recent whale accumulation and increased retail buying have helped the token break out of a bull pennant, positioning it for significant gains.

A well-followed member of the XRP community, ‘XRP Whale,’ also pointed to a similar price target of $10, citing the strong technical and fundamental factors supporting the current rally. At the time of writing, XRP is still approximately 9% below its all-time high of $3.40, which was reached in January 2018. Given the momentum building behind the token and the ongoing positive developments surrounding Ripple, XRP’s price may soon test and potentially exceed its previous all-time high.

As the cryptocurrency market continues to experience bullish momentum, XRP stands out as one of the most promising altcoins. The combination of favorable regulatory prospects, growth in the Ripple ecosystem, and strong whale support makes XRP one of the top tokens to watch in the coming months. Investors are eagerly watching to see if XRP can break through its previous highs and reach new price levels, with many hoping that the token could eventually reach the $10 mark in the near future.