Outside Source
XRP’s rally to a seven-year high came amid the SEC’s latest filing to appeal a court ruling in its partially unsuccessful case against Ripple Labs.
News
XRP rose to its highest level since January 2018 as optimism toward emerging crypto regulations overcame concerns raised by the latest legal appeal filed the US Securities and Exchange Commission (SEC).
The XRP (XRP) price rose to a seven-year high of $3.20 on Jan. 15 before retracing to trade at $3.09 at 8:45 am UTC on Jan. 16. XRP is up over 32% on the weekly chart, CoinMarketCap data shows.
XRP/USDT, all-time chart. Source: CoinMarketCap
The rally came even as the SEC filed an appeal on Jan. 15, challenging a July 2023 ruling by District Judge Analisa Torres that found XRP sales to retail investors did not constitute unregistered securities. The SEC is seeking to have those retail sales classified as such.
Despite the SEC’s appeal, the market has favored the partial legal victories secured by Ripple Labs in the long-standing case, according to Ryan Lee, chief analyst at Bitget Research.
These partial legal victories, paired with investor optimism for more crypto regulatory clarity, are the main drivers of XRP’s price rally, the analyst told Cointelegraph, adding:
“XRP’s surge can be attributed to favorable outcomes in Ripple’s SEC lawsuit and a more crypto-friendly political climate in the US. If regulatory uncertainties are resolved, the influx of institutional investors could further solidify XRP’s position in the crypto market.”
RippleNet’s growing adoption has also “enhanced XRP’s market appeal,” added Lee.
XRP/USDT, 1-day chart. Source: CoinMarketCap
Investor optimism is growing ahead of US President-elect Donald Trump’s inauguration on Jan. 20, which is expected to bring more regulatory clarity for the crypto industry and the potential acceptance of the Bitcoin Act, which seeks to establish a strategic Bitcoin (BTC) reserve for the world’s largest economy.
Related: Bitcoin exchange reserves near 7-year low as hedge funds buy the dip
XRP ETFs may be the next price catalyst for 2025
Trump’s inauguration could present an additional catalyst, thanks to the potential approval of the first spot XRP exchange-traded funds (ETFs) in the US.
SOL and XRP ETPs could attract $3–8 billion. Source: JP Morgan
If approved, an XRP ETF could attract $3 billion to $6 billion in net new investments, assuming that they see the same adoption rate as Ether ETFs, according to estimates from JPMorgan.
Several major asset managers have submitted applications for a Solana ETF, including VanEck, Grayscale, 21Shares, Bitwise and Canary Capital.
The SEC is expected to make preliminary decisions on these applications before the end of January. Grayscale’s application faces a deadline on Jan. 23, with other applicants expecting decisions by Jan. 25.
Related: FTX to begin distributing $1.2B to creditors after Trump inauguration
Can XRP price top $14 on optimistic regulatory developments?
The XRP token’s swift recovery from Jan. 3 lows at $2.20 has bolstered analyst expectations of a new all-time high that could reach double digits in 2025.
This dynamic may set up XRP to outperform Bitcoin’s gains, thanks to the formation of a bullish pennant on the daily chart that could bolster XRP’s price to $14, crypto analyst Steph Is Crypto, wrote in a Jan. 14 X post.
“XRP successfully retested the breakout point. Bullish target: $14. Conservative target: $5,” the analyst said.
XRP/USD, 1-day chart. Bullish pennant. Source: Steph Is Crypto
A bullish pennant is a technical formation used by traders to gauge the continuation of a strong upward rally.
Magazine: Ether may ‘struggle’ in 2025, SOL ETF odds rise, and more: Hodler’s Digest, Dec. 29 – Jan. 4
This article first appeared at Cointelegraph.com News
