Ripple’s native cryptocurrency, XRP, has witnessed a sharp 10% price increase in the last 24 hours, currently trading at $3.18. This rebound follows a brief dip below $2.80 on January 27, triggered by a market-wide selloff linked to the launch of a new AI model by Chinese startup DeepSeek.
Key Highlights:
- XRP gains nearly 10% in 24 hours
- Ripple strengthens regulatory standing with new licenses in New York and Texas
- XRP price charts indicate a potential breakout above $4.50
XRP Leads Crypto Market Recovery
Despite the recent market downturn, XRP has bounced back strongly, leading the broader cryptocurrency market recovery. Analysts attribute this bullish momentum to various factors, including renewed optimism about a crypto-friendly environment under the Trump administration.
Additionally, XRP has formed a bullish flag pattern, a key technical indicator suggesting an upside potential of approximately 50% in the coming weeks.
What’s Driving the XRP Price Rally?
1. Regulatory Progress Strengthens Investor Confidence
Ripple’s acquisition of new regulatory licenses in New York and Texas marks a significant step toward broader adoption and compliance. These licenses could potentially pave the way for expanded institutional use of XRP, further bolstering investor confidence.
2. Federal Reserve’s Interest Rate Decision Looms
The Federal Open Market Committee (FOMC) is set to announce its interest rate decision on January 29. While no rate cuts are expected this month, many investors anticipate multiple reductions in 2025, which could drive further capital into riskier assets like cryptocurrencies.
Adding to the optimism, former President Donald Trump recently called for lower interest rates, reinforcing bullish sentiment around the crypto market.
XRP Price Target: Can It Break Above $4.50?
Since Trump’s 2024 election victory, XRP has been on an upward trajectory. From a technical standpoint, the cryptocurrency appears poised for further gains after forming a bullish flag, a chart pattern that often signals continued upward momentum.
The rally began on January 8, when XRP surged from $2.20 to an all-time high of $3.40 on January 16. At present, bulls are attempting to push the price above the crucial $3.20 resistance level, which serves as the flag’s upper boundary.
If XRP successfully breaks above this resistance, another rally could follow, with a projected February price target of $4.50, representing a potential 50% increase from current levels.
Conclusion: Is Now the Right Time to Invest in XRP?
XRP’s strong performance, coupled with favorable regulatory advancements and anticipated monetary policy shifts, suggests continued bullish momentum. While short-term fluctuations are inevitable, long-term investors may see this as an opportunity to capitalize on the crypto market’s evolving landscape.
As the AI and blockchain industries continue to intersect, investors will closely watch how Ripple leverages these trends to maintain its position in the crypto space. For now, all eyes are on whether XRP can sustain its momentum and reach the coveted $4.50 milestone in the coming weeks.
