XRP has surged more than 12% in the past 24 hours, currently trading at $3.11. The cryptocurrency’s price rebounded from a low of $2.66 on January 27, reaching an intraday high of $3.21 on January 28, according to data from Cointelegraph Markets Pro and TradingView.
This rally is driven by several key factors, including:
Ripple’s regulatory advancements in the U.S.
Liquidation of overleveraged short positions in XRP futures
Technical indicators signaling a potential breakout
Ripple Expands Regulatory Compliance in the U.S.
A major catalyst for XRP’s price increase is Ripple’s recent acquisition of Money Transmitter Licenses (MTLs) in New York and Texas. These states are known for their stringent regulatory frameworks, and securing MTLs strengthens Ripple’s foothold in the U.S. financial ecosystem.
Why This Matters
Ripple now holds over 50 MTLs across the U.S., adding to its 60+ global licenses, which include:
A Major Payment Institution License in Singapore
Registrations as a Virtual Asset Service Provider in Ireland and the Cayman Islands
These licenses allow Ripple to legally facilitate cross-border payments, boosting trust and potentially increasing XRP’s real-world adoption. This growing regulatory approval helps solidify XRP’s use case, contributing to its price rally.
XRP Short Liquidations Surpass $3.3 Million
XRP’s price surge has triggered a wave of liquidations in the derivatives market, wiping out short positions and intensifying the rally.
Key Highlights
In the past 12 hours, $4.1 million in short XRP positions were liquidated, compared to just $847,000 in long liquidations.
Short sellers were forced to buy back XRP to cover their positions, fueling the price jump.
This cascading liquidation effect mirrors January 13-16, when XRP’s price surged 46% to $3.40 following $56 million in short liquidations.
Technical Analysis: XRP Targeting $4.62
Despite a recent dip to $2.66, XRP is showing strong bullish momentum, forming a bull flag pattern on the daily chart.
Key Technical Indicators
The bull flag pattern suggests a continuation of the rally if key support levels hold.
XRP is currently testing resistance at $3.10. A breakout above this level could trigger another rally.
The bull flag’s upside target is approximately $4.62, representing a potential 49% gain from the current price.
The Relative Strength Index (RSI) has risen from 58 to 62 in the last 24 hours, indicating increasing bullish momentum.
Conclusion
XRP’s price surge is fueled by Ripple’s regulatory progress, short liquidations, and strong technical indicators. If the bull flag breakout materializes, XRP could be on track for another major rally toward $4.62 in the coming weeks.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always co
nduct your own research before making investment decisions.
Disclaimer:
This article is for informational purposes only and should not be considered financial or investment advice. Cryptocurrency markets are highly volatile, and trading involves significant risk. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.