XRP, the token by Ripple Labs, a leader in digital payments and infrastructure, has reached heights not seen in three years, jumping over 80% in just a week to hit $1.06. But what’s behind this latest bullish charge?

What Caused the Coin's Explosive Growth?

U.S. Political Changing

The recent U.S. elections and Donald Trump's victory have injected a wave of optimism into the crypto market. Traders are betting that the new administration will take a friendlier stance toward cryptocurrencies. Trump has openly expressed his intention to oust Gary Gensler from his role as SEC Chair. 

If Gensler steps down, Ripple, and by extension, XRP might finally have a clearer runway to regain market trust and expand its use cases. Many XRP traders are hoping this could soften the SEC's harsh stance in court regarding whether XRP should be classified as a security.

Futures Open Interest Surges

One of the biggest signals driving XRP’s price surge is the spike in open interest (OI) on the futures market. According to CoinGlass, OI for XRP futures has rocketed to near all-time highs, just shy of $2 billion. 

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Source: CoinGlass

This surge in OI suggests that traders are doubling down on bets for further upward movement in XRP's price, which drives volatility and the potential for big price swings. 

Nick Forster, founder of DeFi on-chain options protocol Derive, commented:  

The recent spike in XRP futures OI to record levels indicates rising trader interest — a classic sign of bullish market sentiment. Combine that with persistently positive funding rates, suggesting that new market participants could be taking advantage of trading opportunities in XRP.

Technical Signals for Growth

From a technical standpoint, XRP has broken through a long-term downtrend line, sparking renewed bullish sentiment among traders. Crypto technical analyst Mikybull Crypto shared a chart showing XRP’s breakout from a three-year downward trend, highlighting critical resistance levels at $0.85 and $1.10.

The MACD (Moving Average Convergence Divergence) indicator has also flipped to a bullish crossover, indicating that the market could be gearing up for a fresh rally phase.

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 Source: TradingView

Potential Partnership and ETF Speculation

Gensler’s departure could also strengthen the outlook for a spot ETF for the asset. This has excited traders, especially after Bitwise’s earlier application for an XRP ETF. 

Moreover, rumors are swirling that Ripple CEO Brad Garlinghouse could be advising Trump’s team on crypto policy, further stoking excitement.

Pratik Kala, a digital asset fund manager at Apollo Crypto, noted:  

XRP’s rally seems driven by whispers that Garlinghouse may play a role in shaping crypto policy for the new administration.

The prospect of an XRP ETF and Ripple’s possible involvement in guiding U.S. crypto policy has added to the bullish sentiment.

How High Can XRP Go?

Crypto analyst Egrag Crypto believes that a crypto-friendly and transparent regulatory environment could catapult XRP’s price to around $11:  

With unprecedented regulatory clarity, could we see a 40x or even 50x price increase?

Given the positive regulatory shifts and growing speculative interest, XRP seems poised for further gains, potentially solidifying its position in the market for the long term.

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