XRP has experienced remarkable financial momentum over the past eight weeks, with its price skyrocketing by 194%, significantly outpacing Bitcoin's annual gain of 124%. This surge has raised XRP's market attention, particularly as the digital asset reached new heights, trading at $2.90 on January 15, 2025, with its market cap soaring to approximately $164 billion.
Market analyst Dom highlighted the pivotal reasons behind XRP's impressive price movement. According to his analysis, XRP's order book structure plays an instrumental role. Notably, it takes only approximately 59.73 million USDT to influence XRP's price by 25%, compared to the staggering 985 million USDT needed to achieve the same effect for Bitcoin. This discrepancy indicates XRP is roughly 16.5 times easier to move than Bitcoin, primarily due to thinner order books, creating what Dom refers to as a "vacuum effect" under strong buying pressure.
Meanwhile, the market dynamics surrounding XRP's price are underpinned by its supply chain as many long-term holders are less inclined to sell even after substantial gains. Ripple's Chief Legal Officer reaffirmed this sentiment, indicating cautious optimism about XRP’s future following favorable developments, including the SEC's upcoming submission of their opening brief concerning the appeal against Ripple.
The SEC vs. Ripple litigation remains at the forefront of market discussions. The ruling from August 2024 mandated Ripple to pay $125 million, significantly lower than the SEC’s original demand of $2 billion. The outcome of this case is anticipated to shape XRP's price behavior moving forward.
Interestingly, recent developments point toward shifts at the SEC with President-elect Donald Trump nominating Paul Atkins, known for his crypto-friendly approach, to the chair position. If confirmed, this change may lead to alterations in the regulatory framework, which could substantially impact the cryptocurrency market. Ripple’s Alderoty expressed enthusiasm about the prospect of Atkins's appointment, stating, "on January 20, Gensler’s war on crypto ends at the SEC" on his social media platform.
On January 13, 2025, XRP's trading value was recorded at $2.50, indicating considerable fluctuations throughout the week. Analysts like DonAlt, who adjusted their predictions based on market conditions, suggest XRP could be positioned for another significant price rally. DonAlt expressed confidence by stating, "Looking at the graph, I see clear strength," as he pointed to XRP's consistent resilience against pullback limitations around $2.73.
The only notable resistance cited was at $2.73, which XRP must overcome for sustained upward movement. XRP's historical trajectories depict remarkable streaks from trading below one cent to achieving significant milestones. Its peak price reached $3.40 on January 7, 2017, and it currently trades approximately 18% below this high.
Buying enthusiasm surrounding XRP has also intensified due to renewed interest from institutional investors sparked by newly launched XRP-derived trading products across Europe. The combination of decreasing circulating supply and rising trading volume, which surged by 97.0% over the past week, reinforces bullish market sentiments for XRP. The latest data indicates XRP's circulating supply stands at approximately 57.49 billion, constituting about 57.49% of its maximum supply of 100 billion.
While analysts like Dom forecast potential price targets reaching beyond current valuations, they caution investors to remain vigilant of market volatility. Bitcoin's price adjustments and broader cryptocurrency market conditions will likely play consequential roles in XRP’s future performance. Speculations circulate about XRP possibly experiencing price points of $3 by the end of 2024 and hitting peaks between $5 and $7 by early 2025, contingent upon regulatory changes and market sentiment.
Final thoughts on XRP highlight the importance of monitoring its performance against Ethereum, as it currently occupies 42.6% of Ethereum's market cap. To match Ethereum’s current valuation, XRP would need to increase its market cap by approximately $221 billion, necessitating the price to soar to around $6.70 per coin if supplies remain static. This suggests potential hurdles for XRP's upward momentum may lie within balancing growing market interest alongside management of larger supply entries.