In recent days, XRP has seen a remarkable surge, reaching $3 with a 15% increase. Crypto investors speculate: is this a mere rally or a sustained push towards a new ATH of $5? Dive into the detailed analysis ahead to uncover the potential for XRP's future trajectory.
Written by Léa - Last updated on 01/16/2025 at 16:07 by Léa
Why is XRP showing such strong performance ?
Crypto analysts attribute the rise of XRP to key events on both technical and fundamental fronts.
Technically, the cryptocurrency broke out of a bullish flag pattern on its daily chart, signaling a continuation of the uptrend. This breakout allowed XRP to reach a new yearly high of $3.
On the fundamental side, market optimism was fueled by a series of developments. Most notably, the release of lower inflation data reduced pressure on risk assets like cryptocurrencies.
Additionally, XRP’s market capitalization has reached $170 billion, currently surpassing that of BlackRock and Disney. This strengthens this asset’s position in the crypto ecosystem!
Moreover, on-chain data also confirms this enthusiasm. Transactions over $1 million have surged in the past 24 hours. This trend supports the idea of accumulation, often a precursor to sustained crypto rallies.
The role of fundamentals : Ripple leading the pack
The fundamentals of Ripple have also strengthened in recent weeks. The election of Donald Trump as US president is highlighted. This has created a favorable atmosphere for Ripple as evidenced by its CEO Brad Garlinghouse’s close ties with the administration.
Reminder : Ripple invested $5 million in Trump’s inaugural fund, further solidifying its influence.
That’s not all ! The new SEC administration could potentially drop or settle the ongoing lawsuit against Ripple.
Operationally, Ripple continues to strengthen its position as a key player in cross-border payments. This context fosters a positive perception of XRP as one of the most promising cryptocurrencies in the current ecosystem.
We cannot ignore the impact of whales on the current XRP rally. According to Santiment, wallets holding between 1 and 10 million XRP tokens have increased their holdings by 40% in a week. This massive accumulation, estimated at $1.09 billion, indicates strong institutional interest.
Significantly, these massive movements often precede a continuation of the bullish momentum (especially in preparation for an altseason). This confidence is also reflected in significantly increased transaction volumes, boosting liquidity and easing selling pressure on the crypto market.
For investors, XRP remains one of the best current bets.
Buying XRP Today : Opportunity or bull trap ?
While XRP presents clear upward potential, some crypto experts caution against a potential bull trap. Trump’s inauguration, though seen as a positive catalyst, could be a “sell the news” event.
To mitigate risks, investors should monitor a daily close above the $3 resistance. This technical confirmation could:
open the path to new all-time highs,
boost market confidence.
Many analysts, however, remain optimistic about XRP’s long-term trajectory, especially with an imminent altseason. Of course, caution is advisable in the volatile crypto market where rapid movements are common.
⚠️ This article is published for informational purposes and should not be considered as investment advice. Crypto-currency trading involves risk and it is important not to invest more than you can afford to lose.
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Léa is part of the InvestX team which supports members in their training. She is also a crypto enthusiast who follows the market closely. For the InvestX.fr site, she writes articles to help readers decipher the news and what happens day after day in the world of blockchains.
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