XRP gained 42% in the past week, after rallying close to 1% on Friday. The altcoin hit a new all-time high, with the 24-hour trade volume leaving Ethereum (ETH) to bite the dust on Thursday. The token could extend its streak in the coming days following President-elect Donald Trump’s inauguration. 

XRP could extend rally alongside Bitcoin 

XRP rallied over 40% in the past week. Bitcoin (BTC), the largest cryptocurrency recovered from its flashcrash under $90,000 and made a comeback above $104,000 on Friday. The native token of the XRPLedger is rallying alongside the top crypto. 

Trump’s upcoming inauguration is one of the leading catalysts, alongside optimism on crypto regulation, pro-crypto policy and a new approach by financial regulatory agencies in the U.S.

XRP could gain further, entering price discovery next week. 

XRP trades at $3.26 at the time of publication. 

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On-chain indicators support gains 

XRP’s on-chain indicators support a bullish thesis for the altcoin. The total funding rate metric is positive, greater than one throughout January 2025. The count of active addresses recorded a large spike on Thursday, Jan. 16. 

The on-chain indicators on Santiment are conducive to further gains in XRP in the coming week.

The supply distribution metric on Santiment shows an increase in XRP token supply held by wallets that own 10,000 to 100,000, 1 million to 10 million and 100 million and above XRP tokens. The three classes of holders have accumulated the altcoin, even as the price climbs. This is indicative of a likely XRP price increase in the future. 

Market movers and Ripple lawsuit

Monday’s inauguration is the largest market mover in crypto. But RippleNet’s rising adoption among institutions, the developments in RLUSD stablecoin and the SEC’s lawsuit against Ripple are the three key market movers influencing the altcoin’s price. 

Even as the U.S. financial regulator filed an appeal against Ripple on Jan. 15, the altcoin continued its rally undeterred. The July 2023 ruling by Judge Analisa Torres that classified secondary sales of XRP as non-securities is being challenged and the SEC is seeking to have those retail sales classified as unregistered securities sales. 

Ryan Lee, chief analyst at Bitget Research, told crypto.news in an exclusive interview:

“XRP’s surge can be attributed to favorable outcomes in Ripple’s SEC lawsuit and a more crypto-friendly political climate in the US. If regulatory uncertainties are resolved, the influx of institutional investors could further solidify XRP’s position in the crypto market.”

It remains to be seen whether the Trump administration will support pro-crypto regulation and whether it influences the outcome of lawsuits against firms like Ripple Labs. 

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Technical analysis and XRP price forecast

XRP is hovering close to its all-time high at $3.40. At the time of writing, XRP traded at $3.2385. A 22% price rally could push XRP into price discovery, at the 141.4% Fibonacci retracement level of the climb from the $1.9054 low to the $3.4000 peak. 

The technical indicators, RSI and MACD support a bullish thesis for XRP. MACD flashes consecutive green histogram bars. Traders need to keep their eyes peeled as RSI signals that the token is currently overbought or overvalued, as it reads 83. 

In the event of a correction, XRP could find support at the 50% Fibonacci retracement level at $2.6977. 

Expert commentary on XRP

James Toledano, COO at Unity Wallet, told crypto.news in an exclusive interview:

“Given that XRP was stuck at around $0.50 for literally 3 years, its recent breakout momentum reflects new levels of investor optimism around regulatory clarity and the potential approval of an XRP ETF in the following months. If the XRP ETF gets approved, it will have the potential to open the floodgates of capital inflow, meaning it could reach new heights in 2025.”

Toledano warns XRP holders to be wary as altcoins take volatility to the next level in the current market cycle. 

He said:

“Altcoin ETFs have genuine potential to attract capital, especially if supported by innovation-friendly policies with the new incoming U.S. administration. But, their success may be less consistent compared to Bitcoin ETFs due to the seemingly episodic nature of interest in altcoins.

Just take a look at fluctuations in Bitcoin’s price this week. The factors are multifaceted; we could say it’s Trump, seasonality, geopolitics, macroeconomics and sentiment all blended together. To play devil’s advocate, we humans are pattern seekers but sometimes there are hidden drivers and the cause and effects are not always linked.”

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Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.