XRP has seen a sharp increase of 11% in value, reaching $3.35 after the conclusion of legal disputes between the U.S. Securities and Exchange Commission and Ripple Labs.
Reasons Behind XRP's Sudden Price Increase
XRP has jumped 11.71% in the past 24 hours, moving from $3.00 to $3.35. Its market capitalization now stands at $199 billion, while the 24-hour trading volume surged 174.96% to $11.66 billion. The sudden price hike came immediately after the SEC and Ripple agreed to conclude their legal battles. Market analysts believe this decision is a crucial step that removes legal uncertainties surrounding XRP and opens the way for greater institutional participation in the U.S. market.
Factors Driving Institutional Interest
Options market activity has also played a role in the rally, with traders executing large long positions. Additionally, Japan's SBI Holdings filed for an ETF that will include both Bitcoin and XRP, increasing the potential for new investment inflows. Broader market conditions have also contributed, as U.S. policy now allows cryptocurrencies in 401(k) retirement plans, expanding the investor base.
Technical Analysis and Future Projections
Technical analysis supports a bullish sentiment, indicating targets between $8 and $15 over the long term. The move above the $3.33 support zone has strengthened the likelihood of retesting the near-record high of $3.60.
XRP's notable price increase is attributed to a favorable legal conclusion, heightened institutional interest, and positive changes in market policies.
