XRP Soars 50% in January: What’s Fueling the 240% Surge and Will the Bull Run Continue?

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XRP is currently making waves in the cryptocurrency market, with a remarkable 50% price increase this month alone, pushing it past a seven-year high above $3. The altcoin has surged a staggering 240% in the last quarter, and now holds the position of the third-largest cryptocurrency by market cap, with an impressive $176.75 billion valuation—surpassing Tether (USDT).

The Fastest Rally Since 2018

XRP’s recent rally is the most significant since January 2018, a period remembered for the peak of the altcoin boom. The 14-month Relative Strength Index (RSI) has surged to 84.80, its highest level since December 2017, when it reached 94.57. In traditional markets, an RSI above 70 typically signals that an asset is overbought, suggesting a possible correction. However, in strong bull markets, such high RSI readings don’t always lead to a pullback, and prices can continue to rise.

XRP’s Explosive Growth: What’s Driving It?

XRP’s price spike is backed by a surge in trading activity. Spot trading volumes have surged 84.72%, reaching $22.85 billion in just 24 hours, while derivatives trading has doubled to $34 billion. Perpetual futures open interest has also reached an all-time high of 2.34 billion XRP. These numbers indicate a healthy and enthusiastic market, with a funding rate of 13% suggesting investor optimism without signs of overheating.

But it’s not just the numbers that are propelling XRP’s rise. Ripple’s recent launch of RLUSD, a new stablecoin, along with increasing speculation over a potential XRP spot ETF, has generated additional market interest. Moreover, partnerships supporting XRP adoption are creating a strong foundation for its growth.

Also Read: SEC Appeals Ripple Ruling on XRP: Legal Battle Intensifies as Token Price Surges

Will XRP’s Growth Continue?

XRP’s rise to the third spot in the cryptocurrency rankings signals a shift in market sentiment. As Bitcoin climbs past $100,000 and positive developments continue for Ripple, XRP could maintain its momentum. With strong market fundamentals and key projects in the pipeline, XRP’s future looks promising, and its explosive growth may continue in the months ahead.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.