XRP Price Aims for an All-time-high: Can It Sustain the Rally?

XRP price has surged 15%, reaching $3 for the first time in recent weeks, capturing the attention of cryptocurrency investors. The token has seen a remarkable rise of 194% in the past eight weeks. It has far outpaced Bitcoin’s 124% annual growth in 2024.

According to crypto analyst Dom, XRP price movements are easier to achieve compared to larger assets like Bitcoin due to its thinner order book. Dom highlighted that it takes approximately $59.73 million in USDT to move XRP’s price by 25% on Binance’s perpetual markets.

Whales and ETF Speculation Drive Optimism

Institutional investors have been buying XRP in large amounts, which has boosted the prices. The market’s increasing optimism is also driven by rumors that XRP could be listed on a spot ETF. If approved, this type of product may become a strong signal of further institutional investment in cryptocurrency.

Versan Aljarrah founder of Black Swan Capitalist revealed that XRP is more than just a digital asset. He referred to it as a “key to the new financial system.” He cautioned his followers to protect their XRP tokens.

Ripple and SEC Legal Battle Influences XRP’s Trajectory

The legal battle between Ripple and the SEC concerning the handling of XRP remains the key driver of its market trends.

The SEC had sued Ripple in Dec 2020 for conducting a securities sale of XRP without registration. Although in 2023 the court stated that XRP retail sales did not qualify as a securities offering, the SEC was allowed to appeal the decision concerning institutional sales.

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Ripple’s Chief Legal Officer Stuart Alderoty has dismissed the agency’s decision to proceed with the appeal as reckless. Alderoty called the SEC’s decision not to grant the delay a “taxpayer dollars wasted.” Nonetheless, as we have seen, the legal environment remains unpredictable at the moment, and XRP prices are soaring, volumes and investor activity remain strong.

The change in SEC leadership that is expected in the near future will likely influence the case. The SEC Chair, Gary Gensler, who has had a stringent approach towards the cryptocurrencies is expected to resign on January 20.

The President-elect of the United States of America has chosen Paul Atkins, a man who is likely to be more inclined toward crypto, as the SEC Chair. If the case is dropped under the new leadership, the price of XRP could continue to rise.

XRP Price Market Performance Shows Strong Momentum

The market performance of XRP is indicating a bullish trend and increased trading activities of the investors.

At the time of writing, one token is trading at $2.98 and has a market capitalization of $171.21 billion, with a 24-hour change of 15.43%. The trading volume has also risen to $17.64 billion, which is 128.69% higher than the same period.

This has left the investors watching closely the result of the SEC case, and the possibility of a spot ETF approval that may have further implications on the price of XRP. While trading volumes pick up, the biggest question is whether XRP can continue its rally in the next few weeks or face selling pressure.