XRP Surges 16% Amid Speculation of SEC Shakeup and ETF Approval
Ripple’s XRP is making headlines after a significant price rally, jumping 16% in 24 hours to hit $3.17—the highest price in three years. The surge has pushed XRP’s market capitalization to an impressive $178 billion, solidifying its spot as the third-largest cryptocurrency behind Bitcoin and Ethereum. Here’s what’s fueling this bullish momentum.
Why Is XRP Going Up?
XRP’s recent rally, which began in late December 2024, has gained fresh momentum due to a combination of regulatory optimism and ecosystem growth.
The most notable catalyst is the impending SEC leadership change, coinciding with President-elect Donald Trump’s inauguration on January 20. Current SEC Chair Gary Gensler is expected to step down, making way for Paul Atkins, a pro-crypto advocate. This transition has fueled speculation that the long-standing SEC lawsuit against Ripple could see a favorable resolution, lifting the regulatory uncertainty that has dogged XRP for years.
The lawsuit, initiated in 2020, accused Ripple of conducting unregistered securities offerings through XRP sales. A potential settlement under new SEC leadership could not only resolve this issue but also increase the likelihood of a spot XRP ETF approval, further enhancing investor confidence.
Ripple CEO Brad Garlinghouse highlighted that Trump’s election win has already had a positive impact, with the company signing more deals in the final weeks of 2024 than in the preceding six months.
Ripple Ecosystem Expansion Boosts Sentiment
Beyond regulatory developments, the broader Ripple ecosystem has also fueled positive sentiment:
- Stablecoin Success: Ripple’s dollar-pegged stablecoin, RLUSD, launched in December 2024 and has quickly outpaced competitors like PayPal’s PYUSD and Justin Sun’s USDD. RLUSD boasts a market cap of $72 million and a 24-hour trading volume of $141 million, significantly higher than PYUSD’s $24 million volume.
- Meme Coin Popularity: Ripple-themed meme coins are experiencing explosive growth. XRP ARMY is up 186% in the past week, while other tokens like Britto, PHNIX, and LIHUA have also posted double-digit gains.
Whale Activity Fuels Momentum
Whale investors are playing a critical role in XRP’s price surge. Analytics platform Santiment reports that wallets holding between 1 million and 10 million XRP tokens have accumulated over $3.8 billion worth of XRP since November. This buying spree highlights strong confidence in XRP’s future performance.
Analysts See XRP Hitting $10
Market analysts believe XRP’s rally is far from over. With Bitcoin recently surpassing $100,000 and inflation cooling in the U.S., analysts predict XRP could break its all-time high of $3.40, set in 2018, and potentially climb to $10.
- Ali Martinez, a prominent crypto analyst, noted that XRP is in the midst of a “massive bullish breakout” after breaking out of a bull pennant. This technical pattern suggests XRP could gain even more ground.
- Community Support: Well-known XRP community members, such as ‘XRP Whale,’ echo these bullish projections.
At press time, XRP remains approximately 9% below its all-time high, but growing investor confidence and favorable market conditions suggest the token is on the verge of new heights.
Conclusion
XRP’s 16% surge highlights its resilience and growing investor optimism amid key regulatory and ecosystem developments. With speculation of an SEC leadership change, potential lawsuit resolution, and ecosystem innovations, XRP is positioning itself for an exciting 2025.
If analysts’ predictions hold true, XRP could soon achieve its long-awaited breakthrough, solidifying its place as a leading force in the cryptocurrency market.
