XRP, the cryptocurrency closely tied to Ripple Labs, is on a meteoric rise, reaching levels not seen since April 2021. Over the past 24 hours, the token surged 14%, significantly outpacing Bitcoin and other major cryptocurrencies. With a remarkable 200% rally in the past month, XRP now trades near $1.70, marking a turning point for the once-struggling token.
This bullish momentum has sparked renewed optimism, with traders eyeing the $2 mark as a realistic target. The surge is accompanied by a 30% increase in 24-hour trading volume, which soared to $10 billion, led primarily by South Korean exchange UpBit.
I Want XRP back at Number 2 spot more then i want it at 5$ pic.twitter.com/nlg9ZT1q9o
— 𝗕𝗮𝗻𝗸XRP (@BankXRP) November 29, 2024
Factors Driving XRP’s Meteoric Rise
The rally appears to be fueled by a combination of fundamental and regulatory developments. The initial spark came in early November following Republican victories in the U.S. elections, which bolstered investor confidence in tokens with ties to American companies, including Ripple Labs.
The momentum continued in mid-November after U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler announced his plans to step down in January 2024. This news reignited hopes for a more crypto-friendly regulatory environment, further boosting market sentiment around XRP.
Additionally, XRP has seen unprecedented levels of futures open interest, with over 2 billion tokens — worth more than $2 billion — currently held in positions. This reflects heightened market activity and speculation on the token’s price trajectory.
Institutional Interest and ETF Speculation
Institutional interest in XRP is also on the rise. A recent announcement from Ripple revealed plans to invest in the newly rebranded Bitwise Physical XRP ETP, previously known as the ETC Group Physical XRP. The move has fueled expectations of increased institutional adoption and utility for XRP.
Adding to the optimism, some traders are speculating about the possibility of an XRP exchange-traded fund (ETF) in the U.S. This speculation is bolstered by the anticipated regulatory shift post-Gensler’s departure, which could pave the way for more lenient policies.
Meanwhile, developments on the XRP Ledger, such as the launch of a money-market fund that uses XRP for transaction fees, have reinforced expectations of broader institutional usage and real-world applications.
The Path Ahead
With XRP’s price climbing steadily and trading volumes hitting multi-billion-dollar levels, the token is cementing its position as one of the best-performing cryptocurrencies of 2024. While $2 remains an ambitious target, the combination of favorable regulatory developments, growing institutional interest, and speculative fervor suggests that XRP’s rally may have more room to run.
For now, XRP’s ascent serves as a testament to the power of market sentiment and strategic positioning in a rapidly evolving crypto landscape.
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.
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