XRP Hits 7-Year High and Crosses $3 as Whales Accumulate $3.8B and ETF Hopes Ignite

XRP surged by 11% over the past 24 hours, propelling the cryptocurrency to a six-year high above $3. This surge not only led the broader crypto rally but also saw XRP reclaim its position as the third-largest cryptocurrency by market capitalization, surpassing even asset management titan BlackRock with a market cap of $170 billion.

• XRP has surged 11% in the past 24 hours, reaching a six-year high above $3 and reclaiming its position as the third-largest cryptocurrency by market cap.

• Whales have accumulated $3.8 billion worth of XRP tokens over the past two months, indicating strong institutional interest.

• Growing anticipation of a potential spot XRP ETF is a significant driver behind the price surge, with expectations of approval under the new administration.

• Ripple continues its legal fight with the SEC, with the outcome of the appeal potentially setting important regulatory precedents for the crypto industry.

• The inauguration of President-elect Trump and the possible approval of XRP ETFs are poised to act as major catalysts for continued growth.

The recent price rally was significantly fueled by large holders accumulating XRP tokens, with investments totaling approximately $3.8 billion over the past two months. Santiment, an analytics firm, highlighted that addresses holding between 1 million and 10 million XRP tokens have increased their holdings by 1.4 billion coins since November 12, indicating strong bullish sentiment among major investors.

XRP whale activity on the rise | Source: Santiment on X

Diego Cardenas, an OTC trader at digital asset platform Abra, attributed the surge to growing speculation around a potential spot XRP ETF. “This surge is driven by a growing number of partnerships, the launch of Ripple’s stablecoin RLUSD, and speculation about a potential spot XRP ETF,” Cardenas noted. Ripple President Monica Long echoed this optimism, expressing confidence that a spot ETF approval is imminent, especially with the incoming administration poised to accelerate regulatory advancements.

Despite the positive market momentum, Ripple continues to navigate its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). On January 15, the SEC formally filed an appeal challenging a July 2023 ruling that partially dismissed claims against Ripple regarding XRP sales to retail investors. The regulator argues that Ripple’s promotional efforts created an expectation of profits among investors, potentially classifying XRP as an investment contract under the Howey Test.

Source: X

Ripple remains steadfast in its defense, with Chief Legal Officer Stuart Alderoty dismissing the SEC’s latest filings as a “rehash of failed arguments.” Alderoty predicts that the case will lose momentum under the Trump administration, which took office on January 20, 2025. The outcome of this appeal could have significant implications for the broader crypto industry, potentially setting a precedent for how digital assets are regulated in the United States.

Read more: Ripple’s XRP Price Surges as the SEC Conclusion Deadline Comes on Jan. 15

XRP technical analysis | Source: DarkDefender on X

Beyond the regulatory landscape, technical indicators are painting a bullish picture for XRP. The cryptocurrency has broken out of a consolidation pattern that began in early December, suggesting the potential for a further 15% rise to reach new all-time highs above the 2018 January peak of $3.4. Adjusting for inflation, analysts like Galaxy’s head of research Alex Thorn believe XRP could surpass $4.24, establishing a new benchmark.

Moreover, XRP’s chart patterns are signaling robust upward momentum. A bull flag setup on the daily chart indicates the possibility of a 50% rally, targeting $4.16 by February. On the weekly chart, a bull pennant pattern suggests a measured move towards $13-$14 in the coming weeks or months, based on Fibonacci extension levels from the 2017 bull run.

Read more: XRP Price Prediction 2025 - Could XRP Cross $8 in 2025?

XRP vs. Bitcoin on Google Trends | Source: Google Trends

Investor sentiment remains overwhelmingly positive, as evidenced by XRP overtaking Bitcoin in Google search trends on January 15. This shift underscores the growing interest and confidence in XRP relative to other major cryptocurrencies. Additionally, a JPMorgan analyst has projected that the approval of US XRP ETFs could attract between $4 billion and $8 billion in net new assets, further bolstering XRP’s market position.

The upcoming inauguration of President-elect Trump is anticipated to be a critical catalyst for XRP, potentially accelerating the approval process for spot ETFs and reinforcing positive regulatory tailwinds. With XRP now trading well above key moving averages and supported by strong accumulation from large holders, the cryptocurrency is well-positioned for continued growth in 2025.

XRP’s recent performance underscores its resilience and the strong support from both large investors and optimistic market sentiment. While the legal battle with the SEC remains a significant factor, the combination of technical strength, regulatory optimism, and substantial accumulation by whales suggests that XRP may continue its upward trajectory. As the crypto landscape evolves, XRP stands out as a leading asset with the potential to achieve new heights in the coming months.

Read more: XRP Surges 20% Weekly as SEC vs. Ripple Case Nears Conclusion, USDC Hits $20 Trillion in TVL - Jan 15