The price of Ripple (XRP) has broken a nearly three-year barrier to reach $1. This has not happened since November 2021. The milestone comes amid renewed optimism in the crypto market, driven by positive sentiment following increased interest and demand for the token.
With trading volumes rising and investor confidence regaining, the question now is whether XRP will be able to maintain this momentum or if a correction is in sight.
Trump effect and ETF boost assets
The price increase coincides with positive developments surrounding the altcoin since the election of Donald Trump as President of the United States. In addition, several factors have contributed to the appreciation of Ripple’s native token.
XRP Price Chart. Source: TradingView
Furthermore, speculations about a possible XRP ETF have gained momentum. The altcoin has seen a significant increase in institutional demand recently, coupled with its listing on Robinhood. This indicates a growing interest in XRP within the US market.
Possible SEC Change Boosts XRP Price
Another reason behind the rally is speculation that Gary Gensler, the SEC chairman responsible for the Ripple lawsuits, may resign. This possibility has helped sustain XRP’s momentum.
From an on-chain perspective, the increase in Open Interest (OI) has played a major role in the token’s momentum. Data from Coinglass shows that XRP’s OI surpassed $1 billion for the first time in August 2023 following Ripple’s partial victory against the SEC, highlighting the intensification of speculative activities around the token.
In terms of price action, if OI continues to rise, the price of XRP may continue its upward trend. This is because a high OI reflects higher liquidity in the derivatives market, which usually drives stronger price movements.
XRP Price Prediction: Bullish May Continue
XRP's appreciation began around November 5th when bulls vigorously defended the $0.50 support. Since then, the asset's price has risen more than 100%.
Although the Relative Strength Index (RSI) on the 3-day chart indicates that the price of $1 has entered overbought territory, the bulls continue to seek fresh gains.
Bull Bear Power (BBP) confirms this by measuring the strength between the bulls and the bears. A rising BBP indicates bull control, while a falling BBP signals bear dominance.
Currently, BBP is displaying a large green histogram, indicating that bulls are driving the price. If this momentum continues, the Ripple token could rise to $1.40. However, if the sentiment shifts to the bears, the price could retreat to $0.64.
The article XRP breaks the $1 barrier after almost three years appeared first on BeInCrypto Brasil.
