Why Is XRP Price Skyrocketing So Fast In The Last 24 Hours?

5 days ago 27

Why Is XRP Price Skyrocketing So Fast In The Last 24 Hours?

XRP price has continued to stay on the investors’ radar since yesterday, as evidenced by the recent surge in its price. During writing, Ripple’s native asset was up about 8% after consolidating between the $2.3 and $2.5 range over the past few weeks. However, the recent surge has left many speculating over the reasons that might have contributed to the recent gains in it. So, let’s explore some of the key catalysts that may have bolstered the market catalysts.

Why Is XRP Price Rising?

XRP price delivered 8% gains from yesterday and soared to $2.78, with its trading volume rocketing 63% to $8.79 billion. Notably, the crypto has touched a high of $2.83 from a low of $2.58 in just over the last 24 hours, indicating strong market confidence.

Notably, CoinGlass data showed that XRP Futures Open Interest rose 10%, signaling a strong momentum ahead for the crypto. Besides, the Relative Strength Index of 55 also indicates a buying pressure in the market.

Meanwhile, the recent surge in XRP price could be attributed to a flurry of reasons including the broader market sentiment, regulatory shift, and others. Let’s take a tour of the key reasons that might have helped gains in crypto and see how it may perform in the near future.

XRP ETF Gains Momentum: SEC Approval Soon?

Donald Trump’s election win has fueled market sentiment while raising hopes for a pro-crypto regulatory environment in the nation. This is also evident from the recent moves of the US SEC, especially with the formation of the crypto task force.

Amid this, speculations are soaring over a potential XRP ETF approval in the US soon. For context, the US SEC has recently acknowledged XRP ETF filings from 21Shares, sparking market discussions. Besides, it also follows a similar move, the SEC acknowledging Grayscale’s Dogecoin and XRP ETF filings earlier this week.

This reflects a regulatory shift in the US, especially from what it was under Gary Gensler. Besides, it also fueled market sentiment, with many seeing these advancements as a key step for a likely XRP ETF approval in the US.

Meanwhile, if approved, it could significantly boost the crypto’s appeal to investors, while fueling its adoption. Having said that, it appears that these recent developments have acted as major catalysts for boosting the XRP price today.

US Reserve Speculation Fuels Market Sentiment

The US appears to be considering a Crypto Strategic Reserve instead of its prior commitment to a reserve asset based on only Bitcoin. While these rumors have weighed on the BTC maximalists, it has fueled speculations over a potential XRP Reserve in the US.

While there is no confirmation, Donald Trump’s collaboration with Ripple has led many to believe that the US administration might consider Ripple’s native asset for the Reserve asset. In addition, rumors over CEO Brad Garlinghouse’s appointment to Trump’s crypto advisory board have further sparked market discussions. Notably, a renowned lawyer in the XRP community has also said that the crypto must hit $5 to qualify for the US Reserve asset, which has further bolstered market sentiment.

Ripple Vs SEC Lawsuit Conclusion: What To Expect?

The latest XRP price surge could be also due to the soaring discussions over the Ripple Vs SEC case. According to recent market developments, the US SEC might drop or dismiss the long-running legal battle soon. Notably, legal expert Jeremy Hogan recently said that the Ripple lawsuit might conclude even before the XRP ETF approval, which has further sparked market interest.

Simultaneously, the US SEC’s recent stance on the crypto cases has bolstered market confidence. Recently, the US SEC has asked for a 28-day extension period in the Coinbase lawsuit. In a recent filing, the SEC requested this extension while mentioning that the newly formed crypto task force might help in resolving the legal battle. This also led many to speculate a dismissal or settlement in the ongoing XRP lawsuit soon.

Besides, top lawyers also hinted that the US SEC might be delaying the cases before it is waiting for the new US SEC chair, likely Paul Atkins, to join. According to the experts, the US SEC might start dropping the crypto cases once Atkins takes the Chair within the first half of the year.

What’s Next For XRP Price?

The recent surge in XRP price has left many questioning about the future of the coin. Notably, in a recent analysis, a top market expert Dark Defender shared a bullish forecast for Ripple’s native asset, predicting a surge to $5.85.

As XRP nears the $2.80 level, Defender expects it to break the $2.90 barrier and proceed to the critical Fibonacci level of $5.85. The Relative Strength Index (RSI) has formed a Golden Cross, indicating a bullish trend. The expert has set short-term targets at $2.90, $5.85, and $8.03, with support levels at $2.44 and $2.33.

Simultaneously, in a recent analysis, another expert EGRAG CRYPTO said that if the crypto records a strong close above $2.75, the next target will be at $2.94. Once these levels are breached, the asset will proceed towards the $3.22 and $3.40 mark.

Echoing a similar sentiment, renowned analyst Ali Martinez said that if XRP price holds above the $2.3 mark, it could eventually hit the $3 mark. Considering these analyses and predictions, it appears that the crypto is likely to hit the $3 mark soon with its long-term target at $8.