XRP Rises 14%, Nears $1.70, a Price Level Last Reached in April 2021.

XRP Jumps 14%, Reaches $1.70 as Regulatory Shifts and Market Sentiment Fuel Surge

XRP surged by 14% in the past 24 hours, outpacing Bitcoin and other major cryptocurrencies, continuing a month-long rally that has seen the token’s price triple. This upward momentum has brought XRP to near $1.70, a level not seen since April 2021, and traders are now eyeing the $2 mark as the next potential target for the token.

The surge in XRP’s price is attributed to several key factors, including positive regulatory shifts and growing market interest. Over the past month, XRP has emerged as one of the best-performing major tokens, alongside Dogecoin (DOGE), with a 200% price increase. Trading volume has jumped by 30%, reaching $10 billion, with South Korean exchange UpBit leading the charge in volume.

While the exact cause of Friday’s price jump remains unclear, a number of developments have contributed to XRP’s strong performance in recent weeks. The rally began in early November, following Republican victories in the U.S. elections, which boosted investor confidence in tokens linked to U.S.-based companies like Ripple Labs, the issuer of XRP.

Mid-November saw another boost for XRP when U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler announced he would step down in January. This sparked hopes that a change in leadership could result in a more favorable regulatory environment for cryptocurrencies, specifically for Ripple and its XRP token.

XRP’s appeal has also been fueled by record levels of open interest in XRP futures and U.S. dollar-denominated positions, with over 2 billion XRP tokens (worth more than $2 billion) in futures contracts betting on continued volatility in the market.

Additionally, there is growing speculation that XRP could be approved for a U.S.-based exchange-traded fund (ETF), particularly in light of the anticipated regulatory changes. The launch of a new money-market fund on the XRP Ledger, which uses XRP for transaction fees, has further raised expectations of increased institutional adoption.

Ripple’s recent announcement that it plans to invest in the rebranded Bitwise Physical XRP ETP (formerly the ETC Group Physical XRP) also helped drive XRP’s price higher by 10%. This investment demonstrates Ripple’s continued commitment to supporting XRP’s growth and market adoption.

With strong market activity and regulatory developments working in its favor, XRP is on track to potentially break its previous highs, with the $2 mark now within sight for the emboldened cryptocurrency.