XRP Skyrockets 14% and Nears $1.70 Level

XRP (XRP-USD) has been on fire, surging more than 14% in the past 24 hours, and climbing closer to the $1.70 mark, a level not seen since April 2021. This impressive rally has put XRP in the spotlight, leaving major cryptocurrencies like Bitcoin trailing in its wake. What’s behind this surge? A mix of factors—both fundamental and regulatory—are driving the XRP frenzy, including high open interest and expectations of a more favorable regulatory landscape.

XRP’s Surge Has Been a Combination of Factors

XRP’s dramatic rise started earlier this month, following the Republican wins in the U.S. elections, which renewed investor confidence in U.S.-linked tokens like XRP. According to CoinDesk, the surge in XRP’s value also coincided with an announcement that SEC Chair Gary Gensler would step down in January, fueling speculation that the regulatory environment for crypto could loosen.

With over $2 billion in futures positions tied to XRP, the token’s open interest is at record levels, reflecting high expectations for further price action. Some traders are even betting on an XRP exchange-traded fund (ETF) in the U.S. if regulations ease. Additionally, Ripple, XRP’s parent company, has recently announced plans to invest in the rebranded Bitwise Physical XRP ETP, pushing the price higher by 10% following the news.

Traders Remain Optimistic on XRP

With the price nearing $1.70, bulls are eyeing the $2 mark. The current momentum and growing institutional interest in XRP’s network, especially following the launch of a money-market fund on the XRP Ledger, has some traders feeling optimistic about the token’s future. XRP’s strong run has made it the best-performing major token of the month, alongside Dogecoin (DOGE-USD), according to CoinTelegraph. The increasing institutional support and the hope of relaxed regulations have many wondering: is $2 on the horizon for XRP?

At the time of writing, XRP is sitting $1.6826.