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The XRP price has risen to its level all-time high (ATH) from $3.4, creating bullish sentiment in the XRP community. This price increase is due to bullish fundamentals, including Donald Trump’s receptiveness to a crypto reserve that would include the coin.
Factors Behind the XRP Rally to its ATH
CoinMarketCap data shows that the XRP price rose to $3.40 yesterday, a price level that represents the current all-time high (ATH) on some exchanges such as Binance and Kraken. This price increase is due to several factors, including a report that Donald Trump is receptive to the idea of a America’s First Strategic Reserve.
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As Bitcoinist reported, this initiative would focus on cryptocurrencies founded in the US, including XRP, Solanaand USDC. This is bullish for these coins as it would lead to greater adoption of them. This news already created a bullish sentiment among investors, which led to this XRP price increase.
Previously, these investors, especially crypto whales, were accumulating, another factor contributing to the price increase of XRP. Bitcoinist reported that this category of investors had done so Bought 1.43 billion coins in two months. This is huge, considering how these accumulation trends always lead to price discovery, which is currently evident with XRP.
This accumulation trend appears to have been amplified by the news of the potential crypto reserve involving XRP. CoinMarketData shows that the coin’s trading volume increased by 7% over the past 24 hours, with $24.18 billion traded during this period. This increase in trading volume has also contributed to the XRP price rally.
Meanwhile, it is worth noting that the US Securities and Exchange Commission (SEC) has filed its opening brief in its appeal against Ripple. However, this development was considered bullish for the XRP price as the Commission did not challenge Judge Analisa Torres’ ruling that XRP is not a security.
Why the price increase is likely to continue
XRP’s price increase is likely to continue based on its bullish fundamentals and technical characteristics. From a fundamental perspective, Donald Trump will take office on January 20, meaning this crypto reserve, which will include XRP, could come to life sooner rather than later. The Trump administration is also bullish on XRP due to the possible emergence of pro-crypto Paul Atkins as the next SEC chairman.
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Paul Atkin’s pro-crypto This position has led to predictions that the Commission will likely drop the appeal against Ripple once he comes to power. The Commission is also expected to approve pending XRP ETF applications under Atkins.
From a technical perspective, crypto analysts have also given a bullish outlook for the XRP price. Crypto analyst CasiTrades predicted that XRP will break its ATH and rise to between $8 and $13.
At the time of writing, the XRP price is trading around $3.34, up over 7% in the past 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com