XRP (XRP-USD) Has Been on Fire, Surging More Than 14% in the Past 24 Hours

This impressive rally has put XRP in the spotlight, leaving major cryptocurrencies like Bitcoin trailing in its wake. What’s behind this surge?

XRP (XRP-USD) soared on Friday, continuing its impressive rally with a gain of over 14% in the past 24 hours. The token climbed closer to the $1.70 mark, a level not seen since April 2021. This strong performance left major cryptocurrencies like Bitcoin trailing in XRP’s wake.

Several factors, both fundamental and regulatory, are contributing to the XRP frenzy. Here's a closer look at what's driving the token's surprising surge.

1. XRP Surges as Republicans Win in U.S. Elections

XRP's dramatic rise began earlier this month, following the Republican wins in the U.S. elections. This news boosted investor confidence in U.S.-linked tokens like XRP.

The surge in XRP's value also coincided with an announcement that SEC Chair Gary Gensler would step down in January. This news sparked speculation that the regulatory landscape for crypto could loosen.

2. High Open Interest Fuels Speculation of Further Price Action

With over $2 billion in futures positions tied to XRP, the token's open interest reached record levels. This strong interest reflects high expectations for further price action.

Some traders are even betting on an XRP exchange-traded fund (ETF) in the U.S. if regulations ease. This news pushed XRP's price up by an additional 10%.

3. Ripple to Invest in Bitwise Physical XRP ETP

In another development, Ripple, XRP's parent company, announced plans to invest in the rebranded Bitwise Physical XRP ETP. This announcement drove XRP's price up by an additional 10%.

4. XRP Price Nears $1.70, Bulls Eyeing $2 Mark

As XRP's price approached $1.70 on Friday, bulls eyed the $2 mark. The token's strong momentum and growing institutional interest in XRP's network, especially following the launch of a money-market fund on the XRP Ledger, had some traders feeling optimistic about XRP's future.

According to CoinTelegraph, XRP's strong run made it the best-performing major token of the month, alongside Dogecoin (DOGE-USD). The increasing institutional support and the hope of relaxed regulations had many wondering: is $2 on the horizon for XRP?

At the time of writing, XRP was trading at $1.6826.