XRP saw a 50% surge in January, outpacing Bitcoin’s 13% gain and Ethereum’s 4% drop.
XRP saw a 50% surge in January, outpacing Bitcoin’s 13% gain and Ethereum’s 4% drop. The sharp rise came after Ripple Labs secured regulatory approvals, including the New York Department of Financial Services’ approval of its RLUSD stablecoin on Dec. 10. Additionally, the company obtained money transmitter licenses in Texas and New York, adding to its existing regulatory foothold in over 50 jurisdictions.
Increased adoption by financial institutions has also contributed to XRP’s rise. Crypto intelligence firm Santiment reported on Jan. 29 that more major institutions are integrating XRP into payment systems. Among the key partnerships is Ripple’s collaboration with Ondo Finance, which has brought tokenized U.S. Treasury securities to the XRP Ledger.
XRP’s price movement has caught the attention of analysts, with some predicting a breakout past $4 in the near term. Crypto analyst Dark Defender shared in a Jan. 30 post that the token is on the verge of confirming a breakout on both the four-hour and one-day charts. The analyst identified $3.07 as a crucial support level while pointing to a short-term price target of $4.
Technical indicators have also pointed to heightened price action. Bollinger Bands, which measure volatility, are tightening on XRP’s daily chart. Crypto investor Armando Pantoja noted on Jan. 29 that such a pattern often signals an impending sharp price movement.
Despite the bullish outlook, some traders remain cautious. A potential bull trap could form below $2.95, where liquidity pockets have developed. While XRP bounced from its weekly low of $2.70, analysts have identified a strong fair value gap and an order block between $2.98 and $2.90. This area could act as a bid zone before a potential reversal.
With $3 as a key support level, many traders may have placed stop losses just below it. Market movers could attempt to push XRP’s price lower to trigger these stop-loss orders before the next leg up. However, with strong institutional backing, recent regulatory wins, and bullish technical signals, investors are closely watching for the next move.
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