XRP Price Surge Sparks Analyst Warning
The recent surge in the price of XRP, the cryptocurrency issued by Ripple Labs, has caught the attention of analysts and investors alike. Over the past 30 days, XRP has climbed an impressive 232%, outperforming the overall crypto market average.
Analyst Maartunn from the CryptoQuant community has raised concerns about this price increase, labeling it as a “leverage-driven pump.” Similar events in the past have led to corrections of up to 17%, indicating a potential risk for investors.
As of the latest data, XRP is priced at $1.72, showing a 16.4% increase in the past 24 hours, making it one of the best-performing cryptocurrencies in the top 10. The surge in XRP futures’ open interest by 37% further supports the recent price rally.
The bullish momentum for XRP started shortly after the US election results, which saw former President Donald Trump winning a second term. Trump’s crypto-friendly stance during his campaign brought optimism to investors, leading to gains in altcoin prices, including XRP.
However, the most significant price increase for XRP occurred after the announcement of the departure of SEC Chair Gary Gensler on Jan. 20, 2025. Gensler’s tenure was marked by strict regulatory enforcement, including actions against major crypto firms like Binance, Kraken, Coinbase, and Ripple. The ongoing legal battle between Ripple and the SEC regarding XRP sales as unregistered securities offering adds uncertainty to the future of XRP.
Despite these challenges, positive developments for XRP are on the horizon. Ripple recently invested in Bitwise’s XRP fund and launched the first tokenized money market fund on its XRP Ledger. These initiatives, coupled with the potential for XRP to be classified as a non-security in the US, provide hope for investors considering XRP.
While the current price surge for XRP is exciting, investors should proceed with caution and consider the potential risks associated with a “leverage-driven pump.” Market volatility and regulatory uncertainties could impact the future performance of XRP, making it essential for investors to stay informed and make informed decisions.