XRP Price Today: Reasons Behind Current Market Uptrend

XRP’s Large Daily Return

On January 1, 2025, the price of XRP registered its largest daily return since December 2, rising by 11.92%. This significant price increase comes as Ripple looks forward to Donald Trump’s inauguration on January 20.

Breaking Above Key Resistance

Meanwhile, on shorter time frames, the XRP/USD trading pair broke above key resistance at $2.30 after testing $2 as support over the past two weeks. The XRP/USD 4-hour chart is shown below:

XRP/USD 4-hour chart. Source: Cointelegraph/TradingView

Ripple Moves 500M XRP from Escrow

XRP price is up today following a significant XRP transfer worth over $1 billion. According to onchain data, Ripple moved 500 million XRP tokens from its escrow account to another Ripple-owned wallet. However, an interesting note attached to the transaction has caught the market’s attention.

Transaction Note

The transaction note read: ‘January 20th is around the corner. Donald Trump will be in the WH, and we are going to make crypto great again!’ This likely acted as a catalyst today as XRP has been one of the top performers since Donald Trump’s election win in November 2024.

Flipped Bullish on Futures Market

The XRP futures market flipped bullish on the first day of 2025. After a 54% drop in open interest (OI) in December, the crypto assets’ OI jumped by 25% over the past two days. Data from CoinGlass indicated that the open interest increased from $1.86 billion on Dec. 31 to $2.37 billion on Jan. 2, 2025.

Possible Long Positions

These new positions opened over the past two days are possibly long, contributing to XRP’s positive rise. The XRP futures open interest is shown below:

XRP futures open interest. Source: CoinGlass

Short Liquidations and Exchange Reserve

Short liquidations have been at their highest since Dec. 20, with over $15 million wiped out over the past 24 hours. XRP short liquidations were also the third largest liquidated crypto asset, fueling XRP’s bullish breakout.

Binance Exchange Reserve

Additionally, after a flash rise in the XRP exchange reserve at the beginning of December, the supply on Binance decreased from 2.97 billion to 2.90 billion during the final week. This indicates that spot buyers possibly bought the dip as XRP price corrected from $2.25 to $2.00.

XRP exchange reserve on Binance. Source: CryptoQuant

Key Price Levels to Watch

On longer timeframes, XRP maintains a bullish market structure on the daily and weekly charts, but price fluctuations can be expected in the medium term. As shown below, XRP oscillates within the trendlines of a symmetrical triangle pattern without a confirmed breakout.

XRP 4-hour chart. Source: Cointelegraph/TradingView

Resistance Range

A key resistance range between $2.50 and $2.60 may cap XRP’s rise. This particular level has acted as a key reversal point after XRP reached a yearly high of $2.90 in 2024, with XRP failing to convert it into a support level.

Triangle’s Descending Trendline

Currently, this range is confluent with the triangle’s descending trendline, which the XRP/USD pair might fail to break again. A daily candle close of $2.60 would confirm a bullish breakout above this key trendline, leading to new yearly highs above $3, or a 26% gain.

Potential Drop

Conversely, a drop to $2.10, where a daily order block is present, may hinder immediate bullish price action. A daily close above $2.30 will retain investors’ confidence, but a close below $2.30 might usher in another period of profit-taking.

Conclusion

XRP’s price increase today has been significant, and the market is looking forward to Donald Trump’s inauguration on January 20. The XRP futures market has flipped bullish, and short liquidations have been high over the past 24 hours. Key price levels to watch include $2.50 and $2.60, which may act as a resistance range.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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