XRP experienced a 42% surge over the past week, gaining nearly 1% on Friday alone. The altcoin reached a new all-time high, and on Thursday, its 24-hour trading volume surpassed that of Ethereum (ETH). The token may continue its upward trajectory in the days ahead, particularly in the wake of President-elect Donald Trump’s inauguration.

XRP may continue its rally in tandem with Bitcoin

XRP surged by more than 40% this past week. Bitcoin (BTC), the dominant cryptocurrency, rebounded from a flash crash below $90,000, regaining its footing above $104,000 on Friday. The XRPLedger’s native token is rallying parallel to the leading cryptocurrency.

The upcoming inauguration of Trump is seen as a major catalyst, coupled with growing optimism regarding crypto regulation, pro-cryptocurrency policies, and a fresh approach by U.S. financial regulatory bodies.

XRP might further appreciate as it enters a price discovery phase next week.

At the time of writing, XRP is priced at $3.26.

XRP price chart
XRP/USDT daily price chart | Source: Crypto.news

On-chain metrics indicate potential gains

The on-chain signals for XRP bolster a bullish outlook for the altcoin. The total funding rate has remained positive, exceeding one throughout January 2025. A marked increase in the number of active addresses was recorded on Thursday, January 16.

The on-chain metrics from Santiment suggest the possibility of further gains for XRP in the coming week.

XRP on-chain analysis
XRP on-chain analysis | Source: Santiment 

The supply distribution data from Santiment reveals a rise in the token supply of XRP held by wallets with 10,000 to 100,000, 1 million to 10 million, and over 100 million XRP tokens. All three categories of holders have been amassing the altcoin, even as its price ascends, which points to a probable XRP price increase in the future.

XRP supply distribution
XRP supply distribution | Source: Santiment

Market influences and Ripple’s legal situation

The inauguration on Monday is the primary catalyst affecting the crypto market. However, RippleNet’s growing acceptance among institutions, advancements in the RLUSD stablecoin, and the SEC’s lawsuit against Ripple are significant factors impacting the price of the altcoin.

Despite the SEC filing an appeal against Ripple on January 15, the altcoin’s upward momentum remains unshaken. The July 2023 ruling by Judge Analisa Torres, which deemed secondary sales of XRP as non-securities, is currently under challenge as the SEC seeks to classify those retail transactions as unregistered securities sales.

Ryan Lee, lead analyst at Bitget Research, shared insights with crypto.news:

“XRP’s rise can be linked to favorable developments in Ripple’s legal case with the SEC and an increasingly crypto-friendly political atmosphere in the United States. Should the regulatory uncertainties be resolved, we could see a surge in institutional investment that solidifies XRP’s standing in the cryptocurrency landscape.”

Whether the Trump administration will advocate for pro-crypto regulations and how it will affect ongoing lawsuits against companies like Ripple Labs remains uncertain.

Technical insights and XRP price prediction

XRP is trading near its all-time high of $3.40. As of this writing, XRP is priced at $3.2385. A price increase of 22% could propel XRP into a price discovery phase, aligned with the 141.4% Fibonacci retracement level from the $1.9054 low to the $3.4000 peak.

The technical indicators, such as the RSI and MACD, lend support to a bullish perspective for XRP. The MACD displays consecutive green histogram bars. Traders should remain vigilant, as the RSI indicates the token is currently in an overbought condition, registering at 83.

If a correction occurs, XRP could find support at the 50% Fibonacci retracement level, currently around $2.6977.

XRP/USDT weekly price chart
XRP/USDT weekly price chart | Source: Crypto.news

James Toledano, COO at Unity Wallet, provided insights to crypto.news:

“After being largely stagnant around $0.50 for three years, XRP’s recent breakout momentum showcases newfound investor optimism regarding regulatory clarity and the potential approval of an XRP ETF. The approval of the XRP ETF could significantly increase capital inflows, enabling it to reach unprecedented levels in 2025.”

Toledano cautions XRP holders to remain alert, given the typical volatility of altcoins in the current market cycle.

He noted:

“Altcoin ETFs hold substantial potential to attract investment, especially if backed by innovation-friendly policies from the incoming U.S. administration. However, their performance may be less stable compared to Bitcoin ETFs, owing to the episodic nature of interest surrounding altcoins.

Consider the recent fluctuations in Bitcoin’s price this week; numerous factors are at play, including Trump’s influence, seasonal trends, geopolitical events, macroeconomic factors, and overall sentiment. While humans naturally seek patterns, sometimes unseen drivers complicate the cause-and-effect relationships.”

Disclosure: This article does not serve as investment advice. The material and content provided within this page are intended for educational purposes only.