XRP has kicked off 2025 with an explosive rally, adding $15 billion to its market capitalization in just 24 hours and pushing its price to $2.82. This marks its closest approach to the all-time high (ATH) of $3.11 since 2018. The surge reflects both XRP-specific factors and broader trends in the cryptocurrency market, drawing significant attention from investors.
Key Drivers Behind XRP’s Surge
- Broader Market Momentum: XRP’s rally coincided with Bitcoin (BTC) recovering from its recent dip below $90,000 to test $97,000. As often happens, Bitcoin’s performance set the tone for the entire market, which has rebounded by $200 billion since its January lows. However, BTC’s struggle with resistance at $97,000 adds an element of uncertainty to XRP’s trajectory.
- Ripple-SEC Legal Battle: January 15 marked a critical milestone in Ripple Labs’ legal battle with the U.S. Securities and Exchange Commission (SEC). With the final appeals deadline arriving, investors are hopeful for a resolution. Moreover, the departure of SEC Chair Gary Gensler and the appointment of Paul Atkins, a known crypto advocate, has bolstered market sentiment.
- Political Tailwinds: The upcoming inauguration of President Donald Trump on January 20 is adding psychological fuel to the rally. Trump’s pro-crypto rhetoric and promises of regulatory reforms, potentially implemented through executive orders, are seen as a bullish catalyst for XRP and the wider market.
All-Time High in Sight
At its current price, XRP is closer than ever to surpassing its previous ATH of $3.11. However, the increase in token supply since 2018 means its market capitalization has already hit new records. This discrepancy highlights the evolving dynamics of XRP’s valuation.
Should You Buy XRP?
While XRP’s price momentum and improving regulatory environment make it an enticing prospect, potential resistance at $3 and broader market uncertainties warrant caution. Investors should carefully consider their risk tolerance and market conditions before making decisions.
This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research or consult with a professional before making investment decisions.
