XRP Jumps 50% in January as Regulations and Big Investors Boost Price—Is $4 Next?

XRP Jumps 50%

XRP has been on an upward trend, up 50% in January and beating most other major cryptos. While Bitcoin was up 13% and Ethereum down 4%, XRP’s growth has been driven by key regulatory approvals and institutional interest. Now investors are waiting to see if it can break $4.

The Reason Behind XRP’s Rise

A major reason for  XRP’s recent price increase is the regulatory success of Ripple. Ripple’s RLUSD stablecoin was approved by the New York Department of Financial Services in December and this has been a big boost to the company. Moreover, Ripple has received money transmitter licenses in Texas and New York which has widened its regulatory recognition.

 As of now, Ripple is licensed in more than 50 jurisdictions and this has made more financial institutions embrace the use of XRP in payments and transactions. This has greatly enhanced the confidence of the investors, and therefore the price increase.

Institutional Adoption Grows

Institutional interest in XRP is another big driver of the growth. Crypto intelligence firm Santiment reported that more major financial institutions are adding XRP to their payment systems. One big partnership is Ripple’s deal with Ondo Finance which brings tokenized U.S. Treasury securities to the XRP Ledger.

That institutional backing makes XRP the leading digital asset in cross-border payments and DeFi. As more companies use XRP the use case is expanding and that’s good for long-term price appreciation.

Can XRP hit $4?

Many think XRP will test $4 soon. Crypto analyst Dark Defender has pointed out XRP is about to break out based on technicals. XRP is above the $3 support and analysts have $3.07 as the next key level before it can move to $4.

And technicals are also pointing to a big move. Bollinger Bands on the daily chart are contracting. Armando Pantoja, a crypto investor says this is a sign of explosive price action.

But some traders are cautious. If XRP drops below $2.95 it could trigger stop-losses and temporary volatility. Market makers may push the price down before it bounces and the $2.98-$2.90 range is the bid zone.

Bullish Patterns Mean More Upside

XRP’s recent price action has formed a bullish pennant, a pattern that usually means a big upside. Historical data shows similar patterns in late 2024 led to big rallies. If this pattern holds XRP can break through the $3.40 resistance and head to new multi-year highs.

XRP is going above key moving averages, including the 20-day and 50-day exponential moving averages (EMAs). Staying above these levels proves that momentum is strong, and buyers are in control.

What’s Next for XRP?

With regulatory approvals and institutional adoption, XRP is in a good position for further uprising. If the token breaks past $3.40, the next target is $4. Traders should watch key support levels and also be ready for short-term fall down.

Overall, XRP’s performance in January has been impressive, and with strong reasons backing its uprising, investors are interested to see if it can hold this momentum and reach new highs in the next months.

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