XRP Sees 42% Weekly Gain Amid Optimism on Crypto Regulation and Pro-Crypto Policy

XRP has experienced a remarkable surge in its price, rallying over 42% in the past week and hitting a new all-time high. The altcoin’s 24-hour trade volume has also surpassed that of Ethereum (ETH), leaving the latter in its wake. This significant gain is attributed to various factors, including optimism surrounding crypto regulation, pro-crypto policy, and a new approach by financial regulatory agencies in the U.S.

XRP Could Extend Rally Alongside Bitcoin

XRP’s rally has been closely tied to the performance of Bitcoin, which has recovered from its recent flashcrash and surpassed the $104,000 mark. As the largest cryptocurrency continues to show signs of strength, XRP may extend its own rally in the coming days, potentially entering price discovery next week.

On-Chain Indicators Support Gains

XRP’s on-chain indicators are also supportive of a bullish thesis for the altcoin. The total funding rate metric has remained positive throughout January 2025, while the count of active addresses has experienced a significant spike. These indicators suggest that XRP may continue to see gains in the coming week.

The supply distribution metric also shows an increase in XRP token supply held by wallets with 10,000 to 100,000, 1 million to 10 million, and 100 million and above tokens. This accumulation by various classes of holders, even as the price climbs, is indicative of a potential XRP price increase in the future.

Market Movers and Ripple Lawsuit

Monday’s inauguration is a significant market mover in the crypto space, but other key factors influencing XRP’s price include RippleNet’s rising adoption among institutions, the developments in RLUSD stablecoin, and the SEC’s lawsuit against Ripple.

Despite the SEC’s appeal against Ripple, the altcoin has continued its rally undeterred. The July 2023 ruling that classified secondary sales of XRP as non-securities is being challenged, and the SEC is seeking to have those retail sales classified as unregistered securities sales.

“XRP’s surge can be attributed to favorable outcomes in Ripple’s SEC lawsuit and a more crypto-friendly political climate in the US. If regulatory uncertainties are resolved, the influx of institutional investors could further solidify XRP’s position in the crypto market.”

– Ryan Lee, Chief Analyst at Bitget Research

Technical Analysis and XRP Price Forecast

XRP is currently hovering close to its all-time high at $3.40. A 22% price rally could push XRP into price discovery, reaching the 141.4% Fibonacci retracement level of the climb from the $1.9054 low to the $3.4000 peak.

The technical indicators, RSI and MACD, support a bullish thesis for XRP. However, traders should be cautious as the RSI signals that the token is currently overbought or overvalued, reading 83.

In the event of a correction, XRP could find support at the 50% Fibonacci retracement level at $2.6977.

Expert Commentary on XRP

James Toledano, COO at Unity Wallet, notes that XRP’s recent breakout momentum reflects new levels of investor optimism around regulatory clarity and the potential approval of an XRP ETF in the coming months.

“Given that XRP was stuck at around $0.50 for literally 3 years, its recent breakout momentum reflects new levels of investor optimism around regulatory clarity and the potential approval of an XRP ETF in the following months. If the XRP ETF gets approved, it will have the potential to open the floodgates of capital inflow, meaning it could reach new heights in 2025.”

– James Toledano, COO at Unity Wallet

Toledano warns XRP holders to be wary of the altcoin’s volatility, as the current market cycle can be unpredictable.

Stay up-to-date with the latest news and developments in the world of cryptocurrencies and finance by checking out Global Crypto News.

Post Views: 0