XRP has maintained a strong upward trajectory, trading above the $3.00 mark as market sentiment remains bullish despite ongoing regulatory challenges. The surge comes amid growing speculation that incoming U.S. President Donald Trump is considering the creation of a national digital asset reserve favoring American-founded cryptocurrencies like XRP, Solana, and USDC. This potential policy shift, coupled with resilient on-chain metrics and increasing institutional interest, has fueled optimism across the XRP community.
Bullish Momentum Persists Despite SEC Appeal
The U.S. Securities and Exchange Commission (SEC) recently filed an appeal against Judge Analisa Torres’ landmark ruling in the Ripple case, which determined that XRP sales to retail investors did not constitute unregistered securities offerings. The appeal has been met with widespread skepticism from legal experts and market participants alike.
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Ripple’s Chief Legal Officer, Stuart Alderoty, dismissed the appeal as “just noise,” emphasizing that the arguments presented were repetitive and legally weak. He also suggested the current administration’s stance may not survive into the next term, reducing the long-term threat to XRP’s status.
Legal analyst Jeremy Hougan echoed this sentiment, calling the SEC’s brief “lackluster” due to its failure to demonstrate investor harm—a key criterion in securities law. Without clear evidence of wrongdoing or damages, many believe the appeal lacks substantive grounding.
Despite initial price volatility following the news, XRP quickly rebounded, signaling strong investor confidence. This resilience suggests that market participants are increasingly pricing in a favorable long-term outcome for Ripple and its native token.
Trump’s Proposed Crypto Reserve Boosts Market Sentiment
Rumors of a potential U.S.-backed digital asset reserve have significantly influenced recent price action. According to reports, Donald Trump has expressed interest in forming a crypto reserve composed primarily of U.S.-based blockchain projects, including XRP, Solana, and USD Coin (USDC).
While the New York Post claimed Trump has held meetings with project founders to discuss the initiative, the New York Times clarified that Ripple CEO Brad Garlinghouse merely proposed the inclusion of multiple digital assets in any future national reserve strategy. Regardless of the specifics, the mere possibility of federal endorsement has energized the market.
A government-backed reserve featuring XRP could serve as a powerful catalyst for adoption, lending institutional credibility to the asset after years of legal uncertainty. It could also accelerate regulatory approval for financial products such as XRP exchange-traded funds (ETFs).
Bloomberg ETF analyst James Seyffart stated, “I view a Solana or an XRP ETF approval from the SEC as a matter of ‘when,’ not ‘if,’ at this point.” JPMorgan estimates that an approved XRP ETF could attract between $4.3 billion and $8.4 billion in inflows within the first year.
However, Unchained Crypto reported unverified claims that Trump criticized Ripple executives during a private meeting for allegedly supporting Kamala Harris during the election cycle—an allegation that remains unconfirmed but highlights the political sensitivities surrounding crypto policy.
On-Chain Data Confirms Strong Accumulation Trends
Beneath the surface, on-chain activity paints a compelling picture of sustained demand and whale accumulation.
- Market Cap Milestone: XRP’s market capitalization surpassed $190 billion, even though its price has yet to eclipse its all-time high. This is partly due to the gradual unlocking of previously locked tokens, making current valuations more reflective of true supply dynamics.
- Whale Activity Surge: Transactions involving large holders—defined as transfers over 100,000 XRP—have spiked to levels not seen since early December. In a single 8-hour window, over 2,365 transactions exceeding $100K in value were recorded.
- Holder Growth: Santiment data shows that the total number of XRP holders increased by more than 511,000 over the past two months, indicating broad-based retail and institutional adoption.
- Open Interest Soars: Open interest in XRP futures reached an all-time high of 2.34 billion XRP on December 16, marking a 160% increase from post-holiday lows. Rising open interest alongside price appreciation signals strong conviction among leveraged traders.
- Search Popularity Surges: XRP briefly overtook Bitcoin in Google Trends, reaching a peak score of 96 compared to Bitcoin’s 62—highlighting heightened public interest and media attention.
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Technical Outlook: Targeting $4.50 Amid Short-Term Overbought Conditions
XRP has broken through key resistance levels, surpassing $3.00 and reaching a seven-year high near $3.40. The move above $2.90 has validated a bullish pennant pattern on the 8-hour chart, with a measured target exceeding $4.50—the highest level projected by technical analysts.
To sustain this rally:
- Support Level: XRP must hold above $2.90 to maintain bullish structure.
- Key Resistances: Immediate resistance lies at the previous all-time high of $3.55, followed by psychological resistance at $4.00.
- Downside Risk: A break below $2.90 could trigger a retest of the 23.6% Fibonacci retracement level at $2.60.
- Critical Failure Point: A daily close below $1.96 would invalidate the current bull thesis and potentially send prices toward $1.35.
Indicators such as the Relative Strength Index (RSI) and Stochastic Oscillator are currently in overbought territory, suggesting a short-term correction may be imminent. However, strong volume and open interest support the idea that any pullback could be used as a buying opportunity.
Liquidations have been significant—over $37 million in the last 24 hours—with short positions accounting for $19.8 million and longs for $18 million—indicating intense market volatility and active risk-taking.
Frequently Asked Questions (FAQs)
Q: Why is XRP rising despite the SEC appeal?
A: Investors appear confident that the appeal lacks legal strength and may be dropped under a new administration. Broader macro factors like potential U.S. crypto reserves and ETF speculation are outweighing regulatory fears.
Q: Could XRP reach a new all-time high?
A: Yes—technical analysis suggests a target above $4.50 if XRP maintains support at $2.90 and continues building momentum through increased adoption and favorable policy developments.
Q: What is driving increased holder growth for XRP?
A: Growing institutional interest, Ripple’s expanding use cases in cross-border payments, and speculation around ETF approval are attracting both retail and large investors.
Q: How does open interest affect XRP’s price?
A: Rising open interest during an uptrend indicates new money entering the market, often leading to stronger price movements. A drop in open interest during rallies can signal weakening momentum.
Q: Is a U.S. crypto reserve realistic?
A: While no official policy has been announced, increasing bipartisan support for blockchain innovation makes it a plausible future initiative—especially if it emphasizes American-led projects.
Q: What happens if the SEC wins its appeal?
A: A successful appeal could delay ETF approvals and create short-term uncertainty, but it’s unlikely to reverse Judge Torres’ core findings given existing legal precedent from her ruling.
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