XRP Jumps 14%, Nears $1.70 Amid Regulatory Optimism and Increased Market Activity

XRP has surged 14% over the last 24 hours, outperforming Bitcoin and other major cryptocurrencies, extending a month-long rally that has seen its price triple. This rise has brought XRP close to the $1.70 level, a price point not reached since April 2021, and many traders are now eyeing the $2 mark as the next target.

The strong performance comes after several key factors have aligned to support XRP’s growth. Over the past month, the token has become one of the top performers, increasing 200% in value. XRP’s trading volume has spiked by 30%, reaching $10 billion, with substantial volume driven by South Korean exchange UpBit.

While the exact cause of the latest price surge remains unclear, multiple factors have contributed to XRP’s rally. The momentum began in early November, following Republican wins in the U.S. elections, which renewed confidence in tokens tied to U.S.-based companies like Ripple Labs, the company behind XRP.

Mid-November brought another boost to XRP after U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler announced his departure in January. This news raised hopes that a shift in leadership could lead to a more favorable regulatory environment for cryptocurrencies, particularly for Ripple and XRP.

XRP’s futures market has also seen a surge, with over 2 billion XRP tokens (worth more than $2 billion) in open positions, suggesting strong market interest in the token’s future performance and volatility.

Another major development fueling XRP’s price rise is the growing speculation surrounding a potential XRP exchange-traded fund (ETF) in the U.S. This expectation, along with the launch of a new money-market fund on the XRP Ledger, which uses XRP for transaction fees, has heightened optimism about the token’s institutional adoption.

Ripple also recently announced plans to invest in the newly rebranded Bitwise Physical XRP ETP, previously known as the ETC Group Physical XRP. This investment helped drive a 10% increase in XRP’s price, signaling ongoing institutional support for the cryptocurrency.

With strong market momentum, regulatory developments, and increased institutional interest, XRP is positioned to continue its upward trajectory, with the $2 level now in sight.