XRP Price Hits 6-Year High Near $3; ETF Approval Buzz Grows
XRP, the cryptocurrency closely associated with Ripple, soared to a six-year high on Wednesday, briefly surpassing the $3 mark. This surge, fueled by a broader crypto market rally and growing anticipation of favorable regulatory changes, has propelled XRP to become the third-largest cryptocurrency by market capitalization, trailing only Bitcoin and Ethereum.
A Trifecta of Bullish Factors: ETFs, Partnerships, and a New Stablecoin
The recent price jump coincided with Bitcoin's own rally to $100,000 and a broader market advance, as reflected by the CoinDesk 20 Index's 6.7% gain. XRP, however, outperformed both, registering an impressive 11% increase in the past 24 hours, recently trading at $2.95. Since early November, XRP has seen a staggering 488% gain, fueled in part by anticipation of more crypto-friendly policies under the incoming U.S. administration.
Several factors are contributing to XRP's strong performance. "This surge is driven by a growing number of partnerships, the launch of Ripple's stablecoin RLUSD, and speculation about a potential spot XRP ETF," noted Diego Cardenas, an OTC trader at digital asset platform Abra. Ripple President Monica Long further stoked the ETF speculation last week, expressing her belief that approval could come "very soon."
Breaking Out: Technical Indicators Point to Further Gains
Adding to the bullish sentiment, XRP recently broke out of a consolidation pattern that had been in place since early December. This breakout, according to technical analysts, could pave the way for further price appreciation. A 15% increase from current levels would push XRP to new all-time highs, surpassing its 2018 peak of $3.40. However, when adjusted for inflation, Galaxy's head of research Alex Thorn points out that XRP would need to exceed $4.24 to truly reach a new record.
Whales Accumulate: Large Investors Fuel the Fire
Another significant factor contributing to the rally is the accumulation of XRP tokens by large investors, often referred to as "whales." According to analytics firm Santiment, addresses holding between 1 million and 10 million XRP tokens have added a combined 1.4 billion coins, worth approximately $3.8 billion, to their holdings since November 12. This accumulation occurred even as XRP prices consolidated, suggesting strong conviction among these large holders.
The Road Ahead: Can XRP Sustain the Momentum?
XRP's recent surge to a six-year high reflects a confluence of positive developments, including growing institutional interest, potential regulatory shifts, and significant accumulation by large investors. While the cryptocurrency market remains inherently volatile, the combination of these factors suggests that XRP's rally may have further room to run. Whether it reaches new inflation-adjusted all-time highs remains to be seen, but the current momentum is undeniably strong.